NSE vide circular dated June 26, 2024 has issued clarification regarding operational guidelines and SOP on Upstreaming of clients’ funds by Stock Brokers. The guidelines provides that principal amount of the FDR shall remain protected throughout the tenure, even after accounting for all possible pre- termination costs.
Existing FDR not meeting this requirement (with monthly / quarterly / any periodicity interest payout) shall be permissible to continue till June 30, 2024 only. Such FDRs at the time of renewal shall meet the conditions specified hereinabove.
