SEBI modifies the SOP leading to default in repayment of funds to clients by TM/CM
- Blog|News|Company Law|
- < 1 minute
- By Taxmann
- |
- Last Updated on 30 May, 2022
Latest from Taxmann
Circular no. SEBI/HO/MIRSD/DPIEA/P/CIR/2022/72, dated 27.05.2022
SEBI vide circular no. SEBI/HO/MIRSD/DPIEA/CIR/P/2020/115 dated July 1, 2020 specified the Standard Operating Procedure enumerating the steps to be taken by the Stock Exchanges (SEs), Clearing Corporations (CCs) and Depositories in cases where SE/CC is of the view that Trading Member / Clearing Member is likely to default in the repayment of funds or securities to its clients.
The SEBI, in consultation with the Market Infrastructure Institutions and in order to provide equitable distribution of funds amongst investors has decided to modify the Standard Operating Procedure in cases of Trading & Clearing Member leading to default in the repayment of funds or securities to its clients.
As per the modified norms, the unencumbered deposits available with the SEs/CCs after adjusting the dues of the SE/CC and maintaining the minimum Base Capital (BMC), shall be utilised for settling the credit balance of investors.
Further, the investors having a credit balance up to Rs. 25 lakh shall be paid in full to all the investors subject to funds availability and the investors having a credit balance of more than Rs. 25 lakh shall be paid on a pro-rata basis from the remaining funds.
Click Here To Read The Full Circular
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
