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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSE- FAQ on Upstreaming of clients funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs)

14-Aug-2023 | Circular Ref. No: 29/2023

NSE has issued a circular regarding the FAQ on the Upstreaming of clients funds by Stock Brokers (SBs) / Clearing Members (CMs) to Clearing Corporations (CCs). By virtue of this circular, Annexure-A has been annexed with respect to the above issue. The highlights of the FAQ are: 1. In which forms the client funds can be upstreamed by SB/CM - 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. To whom the framework of upstreaming of client funds is applicable - The framework is applicable to all SBs/CMs/non-bank Custodians. Bank-CMs (including custodians that are banks) and proprietary funds of SBs/CMs in any segment and SB?s proprietary funds deposited with CM in the capacity of a client are exempt from the scope of this circular.

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