The Securities and Exchange Board of India on 29th July 2020 has decided to implement its earlier circular on mechanism with regard to Margin obligations to be given by way of Pledge/Re-pledge in the Depository System from 1st August 2020.
Trading member (TM) / Clearing member (CM) shall endeavor to align their systems and accept client collateral and margin funded stocks by way of creation of pledge / re-pledge in the Depository system. The TM / CM shall also be allowed to accept client securities as collateral by way of title transfer into the Client Collateral Account as per the present system. The system of parallel acceptance of the client securities by way of title transfer shall be available only upto August 31, 2020 and no further extension shall be granted.
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