Deposit Requirements for members of the Debt Segment
Summary
This circular prescribes specific deposit requirements for members of the dedicated debt segment on stock exchanges. It mandates that Stock Brokers and Proprietary Trading Members adhere to base minimum capital guidelines, while Clearing and Self-Clearing Members must provide a deposit of Rs 10 lacs subject to certain exemptions. The document directs stock exchanges and clearing corporations to implement these provisions within one month and report their status to SEBI.
Text
SEBI circular dated December 19, 2012 on Base Minimum Capital shall also be applicable to Stock Broker / Proprietary Trading Member of the debt segment.
The deposit shall be ` 10 lacs. No exposure shall be granted against such deposit requirement of the Clearing Member/ Self Clearing Member.
no deposit shall be payable by entity desirous of being CM / SCM in debt segment, in case, it is already a CM or SCM or stock broker of any other segment of the stock exchange / clearing corporation.
no deposit shall be payable in case a CM / SCM clears and settles trades only on gross basis for both securities and funds, and where no settlement guarantee is provided by the clearing corporation.
take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations, within one month from the issuance of the circular;
bring the provisions of this circular to the notice of the members and also disseminate the same on its website;
communicate to SEBI the status of implementation of the provisions of this circular.
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.
Source: SecMarx — Deposit Requirements for members of the Debt Segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.