SEBI received representations from various stakeholders citing inefficiencies due to duplication of monitoring mechanisms and difficulties in uploading data to exchanges. In order to address the issue, SEBI advised the industry associations to consult with MIIs under the aegis of Broker’s Industry Standards Forum (ISF) and submit a proposal to SEBI. The ISF has recommended that some of the reports can be discontinued.
These recommendations have been considered by SEBI and as the changes in reports shall continue to allow the stock exchanges and clearing corporations to retain the supervision over client collateral, in order to bring in efficiencies in reporting and a step towards ease of doing business, certain reports are being discontinued. Based on the above decision the following clauses of the master circular dated May 17, 2023 stand modified:-
Clause 15.5.2 stands deleted.
Clause 15.5.3 stands modified whereby G principle is reiterated as follows: 15.5.3 Stock exchanges shall put in place a mechanism for monitoring of clients’ funds (‘G’ principle) lying with the stock brokers on the principle enumerated below:
G Principle: The total available funds i.e. cash and cash equivalent with the stock broker and with the clearing corporation/clearing member should always be equal to or greater than clients’ funds as per the ledger balance.
Table 5, 6 and Table 7 stands deleted.
The provisions of this circular shall come into force with immediate effect.
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