SEBI Issues a Circular Regarding Changes to the Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives Segments

On 1st February 2023, the Securities and Exchange Board of India (SEBI), in reference to a Circular SEBI/HO/MRD2/DCAP/CIR/P/ 2020/127 issued on 20 July 2020, which prescribes the framework to enable verification of upfront collection of margins from clients in cash and derivatives segments; issued a Circular with the subject bearing “Changes to the Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives Segments”.

Further, SEBI, in reference to Circular SEBI/HO/CDMRD/CDMRD_DRM/P/CIR/2021/689 issued on 16th December 2021, inter alia, modified the aforesaid framework prescribed vide said circular issued on 20th July 2020, providing for additional snapshots for commodity derivatives segment.