Articles - Stocks
SEBI circular on Segregation and Monitoring of Collateral at Client Level
In order to further strengthen the mechanism of protection of client’s collateral from the twin problem of - misappropriation/misuse and default by the Brokers (also called Trading Members or TM) & Clearing Members (who settle all transactions- CM) - the Securities and Exchange Board of India (SEBI) had issued a circular on July 20th, 2021 directing brokers to put systems and processes in place to mitigate the risk of misappropriation or misuse of client’s securities/funds available with the Trading Member (TM).
