SEO Title: SEBI Extends Margin Pledge System Deadline
Summary: The Securities and Exchange Board of India (SEBI) has extended the deadline for the implementation of its new circular on margin obligations. The circular, originally set to take effect on September 1, 2025, now has a new implementation date of October 10, 2025. SEBI’s decision came in response to representations from both the Central Depository Services (India) Limited (CDSL) and the National Securities Depository Limited (NSDL), which requested additional time. According to the depositories, the extension is necessary to complete system developments, conduct thorough end-to-end testing, and ensure a seamless transition for all market participants and investors. The circular, titled “Margin obligations to be given by way of pledge/Re-pledge in the Depository System,” aims to protect investors and regulate the securities market. SEBI has directed all stock exchanges, clearing corporations, and depositories to inform their members and participants of the new timeline, make necessary system and procedural changes, and amend their by-laws, rules, and regulations to ensure compliance with the new provisions. This directive is issued under the powers granted to SEBI by the Securities and Exchange Board of India Act, 1992.
Securities and Exchange Board of India
Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/118|Dated: August 18, 2025
To,
All recognized Stock Exchanges
All Recognized Clearing Corporations
All Depositories
Madam / Sir,
Sub: Extension of timeline for implementation of SEBI Circular ‘Margin obligations to be given by way of pledge/Re-pledge in the Depository System’ dated June 03, 2025
1. SEBI issued circular on ‘Margin obligations to be given by way of pledge/Re-pledge in the Depository System’ on June 03, 2025. The provisions of the circular were to come into effect from September 01, 2025.
2. SEBI has received representation from depositories (CDSL and NSDL) requesting for an extension of time to carry out system developments and to ensure system readiness by carrying end-to-end testing. Based on the same and in order to ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to October 10, 2025.
3. Stock Exchanges, Depositories and Clearing Corporations are directed to:
3.1. bring the provisions of this circular to the notice of their members / participants and also disseminate the same on their websites;
3.2. put in place appropriate systems and procedures to ensure compliance of the provisions of this circular;
3.3. make necessary amendments to the relevant Bye-laws, Rules and Regulations for the implementation of the above decision;
4. This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, read with Regulation 30 of Chapter VII of SEBI (Stock Brokers) Regulations, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
5. This circular is available on SEBI website at sebi.gov.in under the category: ‘Legal → Circulars’.
Yours faithfully,
Aradhana Verma
General Manager
Tel. No: 022 26449633
aradhanad@sebi.gov.in
