Date: 2025-08-18Category: Not ApplicableState: Union GovernmentCountry: India
Extension of timeline for implementation of SEBI Circular ‘Margin obligations to be given by way of pledge/Re-pledge in the Depository System’ dated June 03, 2025
**Summary:**
This circular, reference number SEBI/HO/MIRSD/MIRSDPoD/P/CIR/2025/118, issued by the Securities and Exchange Board of India (SEBI) on August 18, 2025, addresses the extension of the implementation timeline for the SEBI circular dated June 03, 2025, regarding margin obligations to be given via pledge/repledge in the Depository System. Originally slated to take effect on September 01, 2025, the implementation date is now extended to October 10, 2025. This extension is granted based on representations from depositories CDSL and NSDL, citing the need for additional time for system development and end-to-end testing to ensure system readiness and minimize market disruption.
The circular directs all recognized Stock Exchanges, Clearing Corporations, and Depositories to: (1) inform their members/participants of these provisions and disseminate the information on their websites; (2) establish appropriate systems and procedures for compliance; and (3) amend relevant bylaws, rules, and regulations accordingly.
This circular is issued under the authority of Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Regulation 30 of the SEBI Stock Brokers Regulations, 1992, to protect investor interests, promote market development, and regulate securities markets.
The circular is available on the SEBI website (www.sebi.gov.in) under "Legal Circulars." For further information, contact Aradhana Verma, General Manager, at 022-26449633 or aradhana[at]sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India (SEBI): The regulator of the securities market in India; the circular is issued by SEBI.
Stock Exchanges: Entities recognized by SEBI for trading securities, to whom the circular is addressed.
Clearing Corporations: Entities recognized by SEBI for clearing and settling securities transactions, to whom the circular is addressed.
Depositories: Organizations holding securities for investors in electronic form, to whom the circular is addressed.
SEBI Circular Margin obligations to be given by way of pledgeRepledge in the Depository System dated June 03, 2025: The original circular that this notification extends the implementation timeline for.
CDSL: Central Depository Services Limited, a depository that requested an extension of time.
NSDL: National Securities Depository Limited, a depository that requested an extension of time.
Securities and Exchange Board of India Act, 1992: The act under which SEBI derives its powers; mentioned in the circular.
CIRCULAR
SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/118 August 18, 2025
To,
All recognized Stock Exchanges
All Recognized Clearing Corporations
All Depositories
Madam / Sir,
Sub: Extension of timeline for implementation of SEBI Circular ‘Margin
obligations to be given by way of pledge/Re-pledge in the Depository
System’ dated June 03, 2025
1. SEBI issued circular on ‘Margin obligations to be given by way of pledge/Re-pledge
in the Depository System’ on June 03, 2025. The provisions of the circular were to
come into effect from September 01, 2025.
2. SEBI has received representation from depositories (CDSL and NSDL) requesting
for an extension of time to carry out system developments and to ensure system
readiness by carrying end-to-end testing. Based on the same and in order to
ensure smooth implementation without any disruption to the market players and
investors, it has been decided to extend the timeline for implementation to October
10, 2025.
3. Stock Exchanges, Depositories and Clearing Corporations are directed to:
3.1. bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites;
3.2. put in place appropriate systems and procedures to ensure compliance of the
provisions of this circular;
3.3. make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above decision;
Page 1 of 24. This circular is issued in exercise of powers conferred under Section 11(1) of
Chapter IV of the Securities and Exchange Board of India Act, 1992, read with
Regulation 30 of Chapter VII of SEBI (Stock Brokers) Regulations, 1992 to protect
the interests of investors in securities and to promote the development of, and to
regulate the securities markets.
5. This circular is available on SEBI website at www.sebi.gov.in under the category:
‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
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