The National Stock Exchange (NSE) on July 01, 2023, issued a circular regarding the Upstreaming of clients’ funds by Stock Brokers (SBs)/Clearing Members (CMs) to Clearing Corporations (CCs) Segregation and Monitoring of Collateral at the Client Level with reference to SEBI circular no SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84 dated June 08, 2023, SEBI circular no SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/110 dated June 30, 2023.
In view of the above circulars, the revised operational procedures are as under:
• Placement of FDRs as collateral with NCL
• Upstreaming via a pledge of units of Mutual Fund Overnight Schemes (MFOS)
• Addition and Release of Cash as collateral
• Allocation
• Release of Cash towards pay-in
• Release of Other Collaterals
• Reporting of Reasons for Collateral withdrawal
The effective date of the Circular shall be July 01, 2023. The provisions of the Circular stated in Clause – ‘Reporting of Reasons for Collateral withdrawal’ shall come into effect from September 01, 2023.
[Circular No: 237/2023]
