SEBI extends the deadline for implementation of guidelines related to handling of clients securities by trading members or clearing members

Aug 30, 2019 | by Avantis RegTech Legal Research Team


The Securities and Exchange Board of India (SEBI) on August 29, 2019, in order to protect clients’ funds and securities, have decided to extend the effective deadline for implementation of guidelines prescribed in Clause 5 and 8 of SEBI Circular No. CIR/HO/MIRSD/DOP/CIR/P/2019/75 dated June 20, 2019 related to handling of clients securities by trading members or clearing members (TM/CM) by one month.

Clause 5 of the abovementioned Circular talks about “Opening and reporting of Demat Accounts by TM/CM”:

All the existing client securities accounts opened by the TM/CM other than Pool account, Client Margin Trading Securities account’ and ‘Client collateral account’ shall be wound up on or before September 30, 2019. Also the TM/CM shall open the unpaid securities account latest by September 30, 2019.  The TM/CM within one week of closure of existing client accounts shall inform the Stock Exchange the following details-

·         Name of DP

·         Account Number/ client ID

·         Name of Account,

·         PAN

·         Date of opening

All the provisions of the abovementioned Circular shall come into effect on October 01, 2019. Any non-compliance of the provisions issued under this Circular shall attract the penalty and other enforcement action as may be laid down by Exchanges, Clearing Corporations, Depositories and SEBI.

[SEBI Circular: SEBI/HO/MIRSD/DOP/CIR/P/2019/95]


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