SEBI Mandates Upstreaming of all Client Funds Received by Stock Brokers/Clearing Members to the Clearing Corporations
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- Last Updated on 12 June, 2023
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Circular No. SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/84, Dated 08.06.2023
With a view to safeguarding clients’ funds placed with stock brokers (SBs)/clearing members (CMs), the SEBI has mandated the upstreaming of all client funds received by SBs/CMs to Clearing Corporations (CCs). Further, as per the framework, no clients’ funds shall be retained by SBs/ CMs on the end of day basis. The clients’ funds shall all be upstreamed to CCs only in a form of either cash, a lien on FDR, or pledge of units of Mutual Fund Overnight Schemes. The provisions shall be effective from 01.07.2023.
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