Markets regulator Securities and Exchange Board of India (Sebi) on Monday asked exchanges and clearing corporations to initiate measures for liquidating assets of defaulter members within six months of declaring the entities concerned as defaulters.
The watchdog has directed that required measures have to be taken before the appropriate court of law to liquidate moveable and immoveable assets that are not in possession of stock exchanges and clearing corporations.
The recovery of assets would help in meeting the obligations of clients, stock exchanges, and clearing corporations, Sebi said in a circular.
A recognised stock exchange acts as a first-level regulator in the securities market, in so far as trading on its platform by its members is concerned.
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