SEBI Proposes Margin Pledge Reforms to Curb Misuse of Client Securities and Enhance Broker Efficiency
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- By Chetan Kulasri
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- Last Updated on 15 February, 2025
Latest from Taxmann
Draft Circular; Dated: 12.02.2025
SEBI has introduced a draft circular on margin pledge reforms to prevent misuse of client securities and improve broker efficiency. It proposes a functionality where, if a client sells pledged securities under Margin/MTF/CUSPA pledge, depositories will enable a single instruction called ‘Pledge release for early pay-in.’ This will release the pledge and block securities in the client demat account for early pay-in, limited to the client’s delivery obligation, without requiring instructions.
Click Here To Read The Full Circular
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