SEBI modifies penalty provisions for non/short collection of upfront margins in cash segment
Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MIRSD/DOP/CIR/P/2020/146
July 31, 2020
To,
All Recognised Stock Exchanges
All Recognised Clearing Corporations
Dear Sir/Madam,
Subject: Collection and Reporting of Margins by Trading Member (TM) /Clearing Member (CM) in Cash Segment
1. SEBI, vide circular no. CIR/HO/MIRSD/DOP/CIR/P/2019/139 dated November 19, 2019, issued guidelines with regard to collection of margins from clients and reporting of short-collection/non-collection of margins by Trading Member (TM) / Clearing Member (CM).
2. In view of the representations received from investors, TMs/ CMs, stock broker associations, in this regard, following has been decided:
2.1. If TM / CM collects minimum 20% upfront margin in lieu of VaR and ELM from the client, then penalty for short-collection / non-collection of margin shall not be applicable. However, it is reiterated that Clearing Corporation shall continue to collect the upfront margin from the TM / CM based on VaR and ELM.
2.2. The penalty provision for short-collection / non-collection of upfront margin in cash segment shall be implemented with effect from September 01, 2020.
3. SEBI circular dated November 19, 2019 is modified to the extent of the above. All other provisions of the said circular dated November 19, 2019 shall continue to remain applicable.
4. This circular is being issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Yours faithfully
Narendra Rawat
General Manager
Market Intermediaries Regulation and Supervision Department
Download Notification Click Here >>
- ITD (Bihar & Jharkhand) invites empanelment of Cost Accountants u/s 142(2A) FY 2024-2026.
- No additions u/s 68 for unexplained cash credits, unless all three limbs proved/established – ITAT
- Extension of the validity of FCRA registration certificates till 30.06.2024
- Kachha Arthia not entitled to credit for TDS wrongly deducted against his PAN
- Changes in ITR form V and Acknowledgement for A.Y 2024 25 as per Finance Act 2023