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/2020/74dated 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.
Thus,
SEBI vide Circular No. SEBI/HO/MRD2/DCAP/CIR/P/2020/74dated 27.04.2020
states:
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/2020/27dated 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 Section11(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”.
DISCLAIMER: THE ARTICLE IS BASED ON THE RELEVANT
PROVISIONS AND AS PER THE INFORMATION EXISTING AT THE TIME OF THE PREPARATION.
IN NO EVENT I SHALL BE LIABLE FOR ANY DIRECT AND INDIRECT RESULT FROM THIS
ARTICLE. THIS IS ONLY A KNOWLEDGE SHARING INITIATIVE.
THE AUTHOR – CS DEEPAK SETH (ASSOCIATE
PARTNER HELPINGHANDS PROFESSIONALS LLP) AND CAN BE REACHED AT
CONTACTHHPRO@GMAIL.COM OR 9910248911.
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