Member’s attention is drawn to SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020 on “Margin obligations to be given by way of Pledge/ Re-pledge in the Depository System” and SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/88 dated May 25, 2020 wherein the members were required to close all existing demat accounts tagged as ‘Client Margin/ Collateral’ by August 31, 2020. Further members were also prohibited from holding any client securities in any beneficial owner accounts of members, other than in pool account(s), unpaid securities account(s). Exchange had also issued clarifications on the same, vide its notice no 20200731-7 dated July 31, 2020

Members were advised to transfer all clients’ securities to the respective clients or dispose all the securities as directed under the aforesaid circulars. It has, however, come to the notice of the Exchange that some of the Members have neither closed their Client Collateral  and Client Margin Trading Securities accounts as required by aforesaid SEBI circulars  nor marked them for closure or disabled the standing instructions for credits in such accounts.

In view of the above, all the members are directed to close the Client Collateral and Client Margin Trading Securities accounts by November 13, 2020, failing which the Exchange will issue suitable directions to freeze such accounts for both debits & credits (except corporate actions).  

Notwithstanding the above, Exchange may also initiate appropriate disciplinary actions for non-compliance of the said SEBI circular with respect to the closure of the such accounts by the due date.

Members are requested to take note of the contents of the circular and comply.

In case of any clarifications, Members may contact our below officials:

Name of officials	Contact No	Email ID
Prashant Sindhwad Prakash Ananthanarayanan Tushar Shetty	022-22728460 022-22728895 022-22728217	bse.inspection@bseindia.com

For and on behalf of BSE Ltd.  

Kiran Sawant

Asst. Gen. Manager

(Brokers’ Supervision)