**Summary:**
This Securities and Exchange Board of India (SEBI) circular, reference number SEBI/HO/MRD2/DCAP/CIR/2022/0022, dated February 24, 2022, addresses the segregation and monitoring of collateral at the client level. It serves as a further extension to the implementation timeline outlined in circular no. SEBI/HO/MRD2/DCAP/CIR/2021/0598 dated July 20, 2021, specifically regarding provisions beyond paragraphs 4 and 5 of the original circular.
Based on requests from stakeholders, the implementation date for these remaining provisions has been extended from December 1, 2021, to February 28, 2022, as per circular no. SEBI/HO/MRD2/DCAP/CIR/2021/667 dated November 23, 2021. Considering further requests, this circular further extends the implementation date to May 2, 2022.
This circular is issued under the authority granted by Section 11(1) of the Securities and Exchange Board of India Act, 1992, and Section 10 of the Securities Contracts Regulation Act, 1956, to protect investor interests and regulate the securities market.
For further information, contact Sudeep Mishra, General Manager, Market Regulation Department, at sudeepm@sebi.gov.in.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body for the securities market in India, also known as SEBI.
SEBIHOMRD2DCAPPCIR20220022: Circular number issued by SEBI on February 24, 2022, regarding segregation and monitoring of collateral.
Recognized Clearing Corporations: Entities recognized by SEBI for clearing and settlement of securities transactions.
Recognized Stock Exchanges: Stock exchanges recognized by SEBI for trading in securities.
SEBIHOMRD2DCAPCIR20210598: Circular number issued by SEBI on July 20, 2021, which contains provisions regarding segregation and monitoring of collateral at client level. This circular is being amended.
SEBIHOMRD2DCAPPCIR2021667: Circular number issued by SEBI on November 23, 2021, which extended the timeline for certain provisions of the circular dated July 20, 2021.
Securities and Exchange Board of India Act, 1992: Act of the Indian Parliament that established the Securities and Exchange Board of India (SEBI).
Securities Contracts Regulation Act, 1956: Indian legislation regulating securities contracts and the operation of stock exchanges.
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Securities and Exchange Board of India
CIRCULAR
SEBI/HO/MRD2/DCAP/P/CIR/2022/0022 February 24, 2022
To
All Recognized Clearing Corporations
All Recognized Stock Exchanges
Dear Sir/ Madam,
Sub: Segregation and Monitoring of Collateral at Client Level – Extension of
timeline
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.”
2. On the basis of representations received from stakeholders, it was decided, vide circular
no. SEBI/HO/MRD2/DCAP/P/CIR/2021/667 dated November 23, 2021, that provisions
of the said circular dated July 20, 2021 (apart from provisions of Paragraphs 4 and 5)
shall come into force with effect from February 28, 2022 instead of December 01, 2021.
3. SEBI has received requests from various stakeholders to further extend the aforesaid
timeline. After consideration of the same, it has been decided that provisions of the said
circular dated July 20, 2021 (apart from provisions of Paragraphs 4 and 5) shall come
into force with effect from May 02, 2022.
4. 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.
Yours faithfully
(Sudeep Mishra)
General Manager
Market Regulation Department
Email: sudeepm@sebi.gov.in
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