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Economic Times
29-07-2025
- Business
- Economic Times
Sebi relaxes NRI trading norms in derivatives market
Markets regulator Sebi on Tuesday decided to abolish the mandatory requirement for NRIs to notify the names of clearing members or obtain a custodial participant (CP) code for trading in derivatives. ADVERTISEMENT Moreover, their position limits will be monitored at the client level, similar to domestic investors. The decision, based on the recommendation received from Brokers' Industry Standards Forum, is aimed at facilitating ease of doing investment to NRIs for trading in exchange traded derivatives contracts and bringing in operational efficiency. "It has been decided to do away with the mandatory requirement of NRIs having to notify the names of the clearing member/s and subsequent assignment of CP code to the NRIs by the exchange," Sebi said in its circular. For NRIs trading in exchange-traded derivative contracts without CP code, the exchange/clearing corporation would monitor the NRI position limits in the manner similar to the client-level position limits monitored by them, it added. Position limits for NRIs would be same as the client-level position limits specified by Sebi from time to time. ADVERTISEMENT At present, NRIs are required to inform stock exchanges about their clearing member and obtain a CP code, which is used by exchanges to track their positions in the derivatives segment. The regulator has directed stock exchanges and clearing corporations to implement the revised norms within 30 days. Also, they have been asked to allow existing NRI clients to opt out of the CP code framework by submitting an email request within 90 days. Further, members will be required to offer an option to NRIs who initially opt for CP code but later decide to exit, based on an email request. (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
28-04-2025
- Business
- Business Standard
Sebi directs brokers to collect margins by T+1 settlement day
Markets regulator Sebi on Monday directed brokers to collect all other margins, except value at risk (VaR) and Extreme Loss Margin (ELM), by the T+1 settlement day. The decision has been taken due to the shift from T+2 to T+1 settlement cycle. Trading members or clearing members are required to mandatorily collect upfront VaR margins and ELM from their clients. Earlier, they had time till 'T+2' working days to collect margins (except VaR margins and ELM) from their clients. "With effect from January 27, 2023, the settlement cycle has been reduced from T+2 to T+1 across all scrips in the cash market. "In this regard, based on representation received from the Brokers' Industry Standards Forum (ISF) and to ensure a more robust risk management framework, it has been decided that keeping in view the change in the settlement cycles, the TMs (trading members)/CMs (clearing members) shall be required to collect margins (except VaR margins and ELM) from their clients by the settlement day," Sebi said in its circular. The regulator said clients still need to pay margins when calls are made. It further said that the time till the settlement day is allowed only for avoiding penalties, not as an extension for clients to delay payments. In case, the client completes pay-in (money/securities) by the settlement day, it is assumed that other margins were collected, and no penalty is applied. Whereas, if the payment is not made by the settlement day, a penalty will be applied. The new framework will be applicable with immediate effect. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
28-04-2025
- Business
- Time of India
Sebi comes out with timelines for brokers to collect margins
Markets regulator Sebi on Monday directed brokers to collect all other margins, except value at risk (VaR) and Extreme Loss Margin (ELM), by the T+1 settlement day. The decision has been taken due to the shift from T+2 to T+1 settlement cycle. Trading members or clearing members are required to mandatorily collect upfront VaR margins and ELM from their clients. Earlier, they had time till 'T+2' working days to collect margins (except VaR margins and ELM) from their clients. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Husband Calls the Police after Discovering the Shocking Truth About His Wife's Dog Obsession Happy in Shape Undo "With effect from January 27, 2023, the settlement cycle has been reduced from T+2 to T+1 across all scrips in the cash market. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. "In this regard, based on representation received from the Brokers' Industry Standards Forum (ISF) and to ensure a more robust risk management framework, it has been decided that keeping in view the change in the settlement cycles, the TMs (trading members)/CMs (clearing members) shall be required to collect margins (except VaR margins and ELM) from their clients by the settlement day," Sebi said in its circular. The regulator said clients still need to pay margins when calls are made. Live Events It further said that the time till the settlement day is allowed only for avoiding penalties, not as an extension for clients to delay payments. In case, the client completes pay-in (money/securities) by the settlement day, it is assumed that other margins were collected, and no penalty is applied. Whereas, if the payment is not made by the settlement day, a penalty will be applied. The new framework will be applicable with immediate effect.
Mint
28-04-2025
- Business
- Mint
Sebi comes out with timelines for brokers to collect margins
New Delhi, Apr 28 (PTI) Markets regulator Sebi on Monday directed brokers to collect all other margins, except value at risk (VaR) and Extreme Loss Margin (ELM), by the T 1 settlement day. The decision has been taken due to the shift from T 2 to T 1 settlement cycle. Trading members or clearing members are required to mandatorily collect upfront VaR margins and ELM from their clients. Earlier, they had time till 'T 2' working days to collect margins (except VaR margins and ELM) from their clients. "With effect from January 27, 2023, the settlement cycle has been reduced from T 2 to T 1 across all scrips in the cash market. "In this regard, based on representation received from the Brokers' Industry Standards Forum (ISF) and to ensure a more robust risk management framework, it has been decided that keeping in view the change in the settlement cycles, the TMs (trading members)/CMs (clearing members) shall be required to collect margins (except VaR margins and ELM) from their clients by the settlement day," Sebi said in its circular. The regulator said clients still need to pay margins when calls are made. It further said that the time till the settlement day is allowed only for avoiding penalties, not as an extension for clients to delay payments. In case, the client completes pay-in (money/securities) by the settlement day, it is assumed that other margins were collected, and no penalty is applied. Whereas, if the payment is not made by the settlement day, a penalty will be applied. The new framework will be applicable with immediate effect. First Published: 28 Apr 2025, 06:52 PM IST
