The Securities and Exchange Board of India (SEBI) issued a circular dated 27.04.2020 extending the implementation date on ‘review of margin framework for cash and derivatives segments’ (except for commodity derivatives segment) vide circular dated 24.02.2020. In view of the challenges arising due to COVID-19 the Board decided to extend the implementation date of the provisions mentioned in circular (dated 24.02.2020) to 01.06.2020. Earlier the implementation date was 02.05.2020.

Further the Stock and Exchanges and Clearing Corporations are directed to:

  1. Take necessary steps to put in place system for implementation of the circular including the necessary amendments to the relevant byelaws, rules and regulations.
  2. To bring the provision of the abovementioned circular to the notice of the members and to publish the same on the website.
  3. To report SEBI about the status of implementation of the provisions of the circular in the Monthly Development Report.

The abovementioned circular is issued by the SEBI in exercise of its power under Section 11(1) of the SEBI Act 1992 read with Section 10 of the Securities Contracts (Regulation) Act 1956 to protect the interests of investors in securities and to promote the development and regulate the securities market.

Order: SEBI 28.04.2020pdf

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