SEBI Reduces Margin Collection Timeline to Settlement Day for TMs/CMs

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  • Last Updated on 30 April, 2025

Margin Collection Timeline

Circular No. SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/57; Dated: 28.04.2025

Trading Members (TMs)/Clearing Members (CMs) are required to mandatorily collect upfront Value at Risk (VaR) margins and Extreme Loss Margin (ELM) from their clients. They currently have T+2 working days to collect these margins. With effect from January 27, 2023, the settlement cycle has been reduced from T+2 to T+1 across all scrips in the cash market.

Based on representation received from the Brokers’ Industry Standards Forum (ISF), and to ensure a stronger risk management framework, SEBI has now directed TMs/CMs to collect margins (except VaR margins and ELM) from their clients by the settlement day.

If pay-in (both funds and securities) is made by the settlement day, the other margins would be deemed to have been collected, and a penalty for short/non-collection of other margins must not arise. Further, if a client fails to make a pay-in by the settlement day and TM/CM doesn’t collect the margins, it would result in a penalty.

Click Here To Read The Full Circular

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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