The National Stock Exchange (NSE) on June 22, 2023, issued the FAQ on the Upstreaming of clients’ funds by Stock Brokers (SBs)/Clearing Members (CMs) to Clearing Corporations (CCs).
The following has been stated namely: -
• The subject in the form of frequently asked questions (FAQs). The FAQs are enclosed as Annexure-A. The following has been resolved namely: -
1. The client funds shall be upstreamed by SBs/CMs to CCs only in the form of either cash, lien on FDR, or pledge of units of Mutual Fund Overnight Schemes (MFOS)
2. SBs/CMs shall ensure that client funds are invested only in such MFOS that deploy funds into risk-free government bond overnight repo markets and overnight Tri-party Repo Dealing and Settlement (TREPS).
3. Running account settlement of client funds shall continue after the implementation of this circular.
4. As per Para (V) of Part C of SEBI Circular dated June 8, 2023, on Upstreaming of client funds, SB/CM shall not accept any fresh client funds from 30 minutes before SB upstreaming cut-off time
[Notification No. NSE/INSP/57250]
