The Bombay Stock Exchange (BSE) on August 17, 2023, issued updated FAQs on the Upstreaming of Client’s Funds by Stockbrokers / Clearing Members to Clearing Corporations
The following has been stated namely: -
• Whether the tenure of existing FDRs required to be reduced up to one year and one day?
• In which forms the client funds can be upstreamed by SB/CM?
• To whom the framework of upstreaming client funds is applicable?
• Is it required to wind up the existing bank guarantees (BGs) created out of client funds and placed with CCs/CMs before June 30, 2023?
• Whether the MFOS can be considered as collateral with CC/CM under Enhanced Supervision reporting?
• The detailed list of the FAQs on the Upstreaming of Client’s Funds by Stockbrokers / Clearing Members to Clearing Corporations has been attached to the document as Annexure
It states that All the Members are advised to take note of the contents of the circular and comply.
[Notification No. 20230817-1]
