Standard Operating Procedure in the cases of Trading Member / Clearing Member leading to default - Extension of timeline for submission of the Undertaking cum Indemnity bond by the Trading members (TMs) / Clearing Members (CMs) for all the
Summary
SEBI extends the deadline for Trading and Clearing Members to submit Undertaking cum Indemnity bonds for all bank accounts until October 31, 2020. Stock Exchanges and Clearing Corporations are granted flexibility to modify the draft undertaking forms as required. These entities must notify their members of these provisions and disseminate the circular on their websites.
Text
TMs / CMs are required to provide a list of all their bank accounts to the Stock Exchanges (SEs) / Clearing Corporations (CCs) and the SEs / CCs shall obtain an Undertaking cum Indemnity bond from the TM within 90 days from the date of the said SEBI circular.
In view of the prevailing situation due to Covid-19 pandemic and representation received from the Stock Exchanges, it has been decided to extend the timeline for submission of the Undertaking cum Indemnity bond by the TM / CM for all the bank accounts by a period of one month i.e. till October 31, 2020.
It has also been decided to provide flexibility to the SEs / CCs for modifying the Undertaking cum Indemnity bond they need to take from TMs / CMs and suitably modify the draft undertaking wherever required.
Stock Exchanges and Clearing Corporations are directed to bring the provisions of this circular to the notice of their members and also disseminate the same on their websites.
This circular is 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 markets.
Source: SecMarx — Standard Operating Procedure in the cases of Trading Member / Clearing Member leading to default - Extension of timeline for submission of the Undertaking cum Indemnity bond by the Trading members (TMs) / Clearing Members (CMs) for all the . Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.