SEBI

SEBI modifies SoP in cases of Trading Member / Clearing Member leading to default

Modification to Standard Operating Procedure in the cases of Trading Member / Clearing Member leading to default

SEBI vide circular no. SEBI/HO/MIRSD/DPIEA/CIR/P/2020/115 dated July 1, 2020 had specified the Standard Operating Procedure for the steps to be taken by the Stock Exchanges (“SEs”), Clearing Corporations (“CCs”) and Depositories in cases where Trading Member / Clearing Member is likely to default in repayment of funds or securities to its clients.

Aa monetary limit of Rs. 25 lakhs has been prescribed for settling the credit balance of investors out of the unencumbered deposits available with the SEs/ CCs, after adjusting for any dues of the SE / CC and maintaining the minimum BMC, starting from the smallest amount.

The investors having credit balance of more than Rs. 25,00,000/- (Rupees twenty five lakh) shall be paid on pro-rata basis from the remaining funds

Download SEBI Circular No. SEBI/HO/MIRSD/DPIEA/P/CIR/2022/72 Click Here >>

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