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 ..... created out of clients funds 1. Currently 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 followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place periodic reporting mechanisms for SBs/CMs. 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) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the stipulated dates. 7. Given the implementation of the above measures, the provisions of following SEBI circulars shall stand modified to the extent as stated hereinabove: a. SEBI circular MRD/DoP/SE/CIR-11/2008 dated April 17, 2008 on Collateral deposited by clients with SBs ; b. SEBI circular MIRSD/ SE /Cir-19/2009 dated December 03, 2009 on Dealings between a client and a sto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearing members, as the case may be, and also disseminate the same on their websites; b. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above provisions; c. communicate to SEBI, the status of the implementation of the provisions of this circular in their monthly development report. 9. This circular is issued in exercise of powers conferred u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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