Securities and Exchange Board of India (SEBI) on 19 December 2013 laid out the minimum deposit requirements for members in debt segment of the stock exchanges.
SEBI on 20 January 2013 announced a separate debt segment on bourses and had amended norms to enable registration of the stock broker, proprietary trading member, clearing member and the self clearing member on platform.
In the newly issued circular, SEBI has said that the minimum capital requirements as per the norms for stock brokers and proprietary trading members will be applicable for the debt segment as well.
As per the market regulator, SEBI for a member seeking registration in the debt segment, no deposit will be required if they are already member if some another segment on the stock exchange. It also said that the Clearing Member (CM)/Self Clearing Member (SCM) will have to deposit 10 lacks rupees.
No exposure shall be granted against such deposit requirement of the Clearing Member/ Self Clearing Member. The circular also said that no deposit shall be payable in case a CM/SCM clears and settles trades only on gross basis for both securities and funds, and where no settlement guarantee is provided by the clearing corporation.
This circular was issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of and to regulate the securities market.
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