9911796707
TMI BlogBank Guarantees (BGs) created out of clients’ fundsX X X X Extracts X X X X X X X X Extracts X X X X ..... urrently Stock Brokers (SBs)/ Clearing Members (CMs) pledge client's funds with Banks which in turn issue Bank Guarantees (BGs) to clearing corporations for higher amounts. This implicit leverage exposes the market and especially the client's funds to risks. Pursuant to discussions with various stakeholders, it has been decided to implement the following measures in order to safeguard the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. Stock exchanges and clearing corporations are directed to submit the following data to SEBI on fortnightly basis (starting from June 01, 2023): Collateral data as on < Date > at < Name of the clearing corporation > Name of the SB/CM Nature of the entity (SB/CM/SCM) Total BG amount as collateral Total BG amount (out of clients' funds) as collateral Total BG amount (out of prop funds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h SBs'; b. SEBI circular MIRSD/ SE /Cir-19/2009 dated December 03, 2009 on 'Dealings between a client and a stock broker'; c. SEBI circular SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016 on 'Enhanced supervision of stock brokers/depository participants'; d. SEBI circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25,2020 on 'Margin obligations to be given by way of pledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heir monthly development report.
9. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
[email protected] X X X X Extracts X X X X X X X X Extracts X X X X
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