Sebi gives more time to comply with rules on client-level segregation, monitoring of collaterals

Capital markets regulator Sebi on Thursday deferred implementation of the new regulations on client-level segregation and monitoring of collaterals till May 2.

This is the second time the regulator has extended the deadline to comply with the rule. Initially, the regulator had given time till December 1, 2021, which was extended to February 28, 2022.

In a circular, Sebi said it has received requests from various stakeholders to further extend the timeline. After consideration of the same, it has been decided to further extend the deadline till May 2, 2022.

Under the new framework, a Trading Member (TM) and Clearing Member (CM) have to report disaggregated information (segment-wise and asset type-wise break-up) of each client collateral.

Besides, clearing members will be required to maintain at least 50 percent of the total collateral in the form of cash or cash equivalents with Clearing Corporations (CCs).

At the individual client level, a client can have allocation of cash…


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