Segregation and Monitoring of Collateral at Client Level – Extension of timeline
Summary
SEBI issues a circular to extend the implementation timeline for specific collateral segregation provisions originally mandated in July 2021. The effective date for these provisions is postponed from December 1, 2021, to February 28, 2022, following stakeholder representations. This directive is issued under Section 11(1) of the SEBI Act and Section 10 of the SCRA to protect investor interests.
Text
SEBI, vide circular no. SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated July 20, 2021 issued certain provisions in the subject matter. The para 50 of the said circular reads as under: “ The provisions of Paragraphs 4 and 5 of this circular shall come into force with effect from October 01, 2021, and other provisions of this circular shall come into force with effect from December 01, 2021.”
In this regard, on the basis of representations received from stakeholders, it has been decided that provisions of the said circular (apart from provisions of Paragraphs 4 and 5) shall come into force with effect from February 28, 2022 instead of December 01, 2021.
This circular is being issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 , read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Source: SecMarx — Segregation and Monitoring of Collateral at Client Level – Extension of timeline. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.