The Securities and Exchange Board of India vide its notification dated 23rd November 2021 has extended the timeline for client level segregation and monitoring of collateral to 28th February 2022.
SEBI vide its eariler circular dated 20th July 2021, has notified the framework for segregation and monitoring of collateral at client level to ensure protection of investors’ collateral and it has also put in place a reporting mechanism that will entail disaggregated information, segment-wise and asset type wise break-up — of each client collateral.
The measures will help in further strengthening the mechanism of protection of client collateral from misuse by trading member (TM) or clearing member (CM) and default of such members and other clients.
In this regard, on the basis of representations received from stakeholders, it has been decided that provisions of the above circular (apart from provisions of Paragraphs 4 and 5) shall come into force with effect from February 28, 2022 instead of December 01, 2021.
