The Securities and Exchange Board of India Vide its Notification dated 25th May 2020 has decided to extend the implementation date of the guidelines with regard to Margin obligations to be given by way of Pledge/ Re-pledge in the Depository System to 1st August 2020.
Further the shares in depository account, which may be pledged or repledged, can be used as margin for another three months till August 31 in the wake of coronavirus pandemic.
In view of the situation arising due to COVID-19 pandemic, various representations was received from the depositories and the clearing corporations that the changes to the systems and software development are still under progress, therefore SEBI has decided to extend the implementation of the framework to 1 August 2020.
However, the provision regarding holding of Power of Attorney by TM or CM will be applicable from June 1.
Further, with regard to confirmation from the client or pledger through one-time password on the mobile number or registered e-mail id or other verifiable mechanisms, Sebi has clarified that such confirmation shall be required only once from the client at the time of initial creation of pledge in favour of trading or clearing member and subsequent repledging by trading member need not require any further confirmation from the client.
Click here to read the Notification.
