SEBI amends norms for determination of legitimate claims
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- Last Updated on 25 October, 2021
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Circular No. SEBI/HO/CDMRD/DoC/P/CIR/2021/651 October 22, 2021
Based on internal deliberations/discussions and comments from the Stock Exchanges, the SEBI has decided to revise the section relevant to the determination of legitimate claims with the goal of aligning with securities market norms. When a member is designated a defaulter, the claim must be presented to the Member Core Settlement Guarantee Fund Committee (MCSGFC) for penalty and approval.
In addition to forgoing, the MCSGFC’s advice w.r.t. legitimate claims shall be sent to the IPF Trust for disbursement of the amount immediately.
In case the claim amount is more than the coverage limit under IPF or the amount sanctioned and ratified by the MCSGFC is less than the claim amount then the investor will be at liberty to prefer for arbitration outside the exchange mechanism / any other legal forum outside the exchange mechanism for claim of the balance amount.” However, the provisions of this circular shall come into effect from January 1, 2022.
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