SEBI Extends Timeline for Upstreaming of Clients’ Funds by Stock Brokers/Clearing Members
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- By Chetan Kulasri
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- Last Updated on 3 July, 2023
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Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/110; dated: 30.06.2023
Earlier, SEBI vide circular no. dated June 30, 2023 mandated upstreaming of all client funds by the Stock Brokers/Clearing Members to Clearing Corporations. As per the framework, Stock Brokers/Clearing Members are not allowed to retain clients’ funds on end of day basis. SEBI has modified the circular.
Now, SBs/CMs may receive funds from clients beyond the prescribed cutoff time for upstreaming, subject to the condition that there is no further movement of funds from that account (i.e., a debit freeze) till the opening of upstreaming window on the next day. The circular shall be effective from 01.09.2023.
Click Here To Read The Full Circular
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