SEBI issues extension of implementation date of Circular on ‘Review of Margin Framework for Cash and Derivatives segments (except for Commodity Derivatives Segment)’

The pandemic has cast its shadow across various economic activities with massive dislocation in global production, supply chains and trade. In wake of the current nationwide lock down as directed by Government of India due to issue of Covid-19, a need has been felt to extend the timelines for processing of various investor requests pertaining to Compliance and disclosures to be made under SEBI Regulations and various SEBI circulars. Also, SEBI feels to amend various regulations as per the need of the time. Also, in the wake of current scenario of lockdown in country, SEBI has issued extension of implementation date of Circular on ‘Review of Margin Framework for Cash and Derivatives segments (except for Commodity Derivatives Segment carried out by Recognized Stock Exchanges and Clearing Corporations (except Stock Exchanges and Clearing Corporations in International Financial Services Centre for processing various investor requests pertaining to Compliance and disclosures to be made under SEBI Regulations and various SEBI circulars.

Thus, SEBI vide Circular No. SEBI/HO/MRD2/DCAP/CIR/P/2020/74 dated 27.04.2020 after considering the current situation due to COVID 19 states extension of implementation date of Circular on ‘Review of Margin Framework for Cash and Derivatives segments (except for Commodity Derivatives Segment.

SEBI

Text of the SEBI Circular is as follows:-

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/MRD2/DCAP/CIR/P/2020/74

April 27, 2020

To

All Recognized Stock Exchanges and Clearing Corporations (except Stock Exchanges and Clearing Corporations in International Financial Services Centre)

Dear Sir/ Madam

Extension of implementation date of Circular on ‘Review of Margin Framework for Cash and Derivatives segments (except for Commodity Derivatives Segment)’

1. SEBI, vide Circular no. SEBI/HO/MRD2/DCAP/CIR/P/2020/27 dated February 24, 2020, reviewed the margin framework for cash and derivatives segments (except for commodity derivatives segment). The provisions of this Circular were to come into effect from May 01, 2020.

2. In view of the challenges arising out of COVID-19 pandemic and various other surveillance measures in place, it has been decided to extend the implementation date of the provisions of the aforesaid Circular to June 01, 2020.

3. Stock Exchanges and Clearing Corporations are directed to:

a) take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations;

b) bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and

c) communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report.

4. This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act 1992, read with Section 10 of the Securities Contracts (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

5. This circular is available on SEBI website at www.sebi.gov.in at “Legal Framework→Circulars”.

Yours faithfully

Pradip Bhowmick
Deputy General Manager
Market Regulation Department
email: pradipb@sebi.gov.in

—————-

The Author CS Deepak Seth (Associate Partner at Helpinghands Professionals LLP) and can be reached at contacthhpro@gmail.com or 9910248911.

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