Sebi allows acceptance of client securities as collateral till August 31

Markets regulator Sebi on Wednesday allowed co-existence of the current title transfer collateral mechanism and the new pledge and re-pledge process till August 31.

The decision has been taken in view of the prevailing situation due to the Covid-19 pandemic and partial lockdowns in various areas of the country.

Besides, the regulator received representations from stock brokers regarding changes to the systems and software development.

In a circular, the Securities and Exchange Board of India (Sebi) said the mechanism of pledge and re-pledge will be implemented with effect from August 1.

Trading members (TMs) or clearing members (CMs) need to