SC: Externally Procured Parts Given For Assembly, Not Used in Manufacture, Not Liable to Excise Duty  ||  SC: Upholding Surendra Koli’s Conviction on Rejected Evidence Would Violate Articles 14 and 21  ||  SC: In Execution Petition, Decree-Holder Must Prove Violation by Judgment Debtor  ||  SC: Insurers Must Compensate Accident Victims Despite Policy Breach, Can Recover From Owner  ||  Kerala HC: Long-Term Posting of Same Police Officer at Sabarimala May Affect Transparency, Efficiency  ||  Delhi HC: Post-Dated Cheques Given as Security Attract Section 138 NI Act After Liability Arises  ||  MP High Court: Railways Liable for Deaths on Tracks if it Fails to Take Preventive Measures  ||  Ker HC: NDPS Case Stands Even if Contraband Listed in Ml, if Chemical Report Shows Equivalent Weight  ||  Kerala HC: Father’s Retirement Benefits Can Be Attached for Child Maintenance Despite S.60(1)(g) CPC  ||  Supreme Court: A Decree Declared 'Nullity' Can be Challenged at Any Stage, Including Execution    

Disclosures on Margin obligations given by way of Pledge/ Re-pledge in the Depository System- (Securities and Exchange Board of India) (02 Sep 2020)

MANU/SDEP/0009/2020

Capital Market

1. Regulation 29 (4) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (herein after referred as "Takeover Regulations") provides that for the purposes of disclosure under regulation 29(1) and (2), shares taken by way of encumbrance shall be treated as an acquisition, shares given upon release of encumbrance shall be treated as a disposal, and disclosures shall be made by such person accordingly in such form as may be specified.

2. SEBI vide circular dated February 25, 2020 issued guidelines on acceptance of collateral from clients in the form of securities by Trading Member (TM) / Clearing Member (CM), only by way of 'margin pledge', created in the Depository system.

3. In this regard, considering the representations received and in consultation with market participants, for ease of doing business it has been decided that disclosures specified under Regulation 29(4) of Takeover Regulations, in relation to shares encumbered with TM /CM as a collateral from clients for margin obligation in the ordinary course of stock broking business are dispensed with.

4. This circular is issued in exercise of powers conferred by section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Tags : DISCLOSURES   MARGIN OBLIGATIONS   DEPOSITORY SYSTEM  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved