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

Timelines for collection of Margins other than Upfront Margins - Alignment to settlement cycle

28-Apr-2025 | SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/57

SEBI has issued the circular regarding the Timelines for the collection of Margins other than Upfront Margins- Alignment to settlement cycle, effective from 28th April, 2025.

This circular has been issued in reference to the master circular for Stock Brokers dated August 09, 2024 (Master Circular) which requires the Trading Members (TMs)/ Clearing Members (CMs) to collect margins from their clients in cash segment (para 39.1).

Key Highlights are as follows:
1. In Para 39.1.2, The timeline for the collection of the margins (except VaR margins and ELM) from their clients by the trading Member (TM) /Clearing Member (CM) has been reduced till settlement day which was earlier allowed for T+2 days.
2. In Para 39.1.3, if pay-in (both funds and securities) is made by settlement day, the other margins would deemed to have been collected and a penalty for short / non-collection of other margins shall not arise, which was earlier to be made by T+2 working days.
3. In Para 39.1.5, the penalty will be levied in the case if the client fails to make pay-in by settlement day and TM / CM do not collect other margins from the client by settlement day which was earlier T+2 working days for both clients as well as the TM / CM.

Kindly refer to the attached documents for more information

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