Sebi extends deadline for new margin collection norms by a month

Penalty provision for short-collection, non-collection of upfront margins in cash segment will be implemented effective Sept 1, says regulator

The Securities and Exchange Board of India (Sebi) has pushed the deadline by a month for implementing the new framework pertaining to margin collection by brokers from their clients.

“The penalty provision for short-collection or non-collection of upfront margin in cash segment shall be implemented with effect from September 1, 2020,” the regulator said in a circular on Friday. According to an earlier circular, the new norms were to kick in from August 1. The markets regulator has also eased the norms for collection of margins.

“If a trading/clearing mem­ber (TM/CM) collects minimum 20 per cent upfront margin in lieu of VaR