SEBI issued a circular on Thursday, February 24, extending the deadline for implementation of F&O (Futures and Options) margin rules.
Market regulator SEBI (SEBI) on Thursday, February 24 issued a circular extending the deadline for implementation of F&O (Futures and Options) margin rules. Under these rules, new compliance systems related to the monitoring and segregation of securities were implemented at the client level.
According to the original SEBI notification, the new compliance system was supposed to be effective from December 1, 2021. However, due to a dispute over curvy stockbroking, the deadline was extended to 28 February 2022. In the case of Curvy stockbroking, the client’s shares were mortgaged against the loan by the firm without their permission.
However, SEBI has now extended the February 28 deadline to May 2, 2022. The SEBI said that the deadline has been extended in view of the fact that many stakeholders had requested extension of the deadline for accepting the changes made before the implementation of the new compliance system.
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In the meantime, SEBI has notified amendments to the rules relating to depository and participants SEBI has increased the total amount required for the transaction of members in the new rules.
According to the notification issued on Wednesday, the revised rules require stock brokers to have a net worth of Rs 3 crore within one year from the date of notification. At the same time, the total amount will be increased to Rs 5 crore within two years from the date of notification.
According to SEBI, the change in the rules is aimed at reducing potential risks in the increasing participation of investors in the securities market.
