Requirement of Base Minimum Capital Deposit for Category 2 Execution Only Platforms
Summary
This circular mandates that Category 2 Execution Only Platforms must maintain a Base Minimum Capital deposit of Rs. 10 Lakhs with the stock exchange. It clarifies that for entities registered in multiple segments, the deposit requirement is not additive but limited to the highest applicable amount. The directive modifies previous BMC requirements and instructs stock exchanges to implement these changes immediately.
Text
members of stock exchanges functioning only in EOP segment (Category 2 EOP) shall maintain a sum of Rs. 10 Lakhs with the stock exchange as BMC deposit.
for members having registration of more than one segment on the same stock exchange, the BMC deposit requirement shall not be additive for such number of segments and shall be the highest applicable BMC deposit, across various segments.
Stock exchanges are directed to: take necessary steps and put in place necessary systems for the implementation of the above; make necessary amendments to the relevant bye-laws, rules and regulations, wherever applicable, for the implementation of the above; and bring the provisions of this circular to the notice of market participants (including investors) and also disseminate the same on their website.
The provisions of this circular shall be implemented immediately.
The SEBI circulars specified at paragraph 3 above, stand modified suitably. All other relevant provisions with respect to BMC Deposit shall continue to remain applicable.
Source: SecMarx — Requirement of Base Minimum Capital Deposit for Category 2 Execution Only Platforms. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.