SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/57

CIRCULAR SEBI/HO/MIRSD/MIRSD -PoD/P/CIR/2025/57 To All recognised Stock Exchanges All recognised Clearing Corporations (except Commodity Clearing Corporations) Sir/ Madam, Sub: Timelines for collection of Margins other than Upfront Margins – Alignment to settlement cycle The Master Circular for Stock Brokers dated August 09, 2024 ("Master Circular") , requires the Trading Members (TMs)/ Clearing Members (CMs) to collect margins from their clients in cash segment (Para 39.1) TMs / CMs are required to mandatorily collect upfront VaR margins and ELM from their clients. TMs/CMs have time till 'T+2' working days to collect margins (except VaR margins and ELM) from their clients (Para 39.1.2) . With effect from January 27, 2023, settlement cycle has been reduced from T+2 to T+1 across all scrips in cash market. In this regard, based on representation received from the Brokers' Industry Standards Forum (ISF) and to ensure a more robust risk management framework, it has been decided that keeping in view the change in the settlement cycles, the TMs/ CMs shall be required to collect margins (except VaR margins and ELM) from their clients by the settlement day. Accordingly, the below given paras of the Master Circular shall be modified as follows: Para 39.1.2: " Henceforth, like in derivatives segment, the TMs/CMs in cash segment are also required to mandatorily collect upfront VaR margins and ELM from their clients. The TMs/CMs will have time till settlement day to collect margins (except VaR margins and ELM) from their clients. (The clients must ensure that the VaR margins and ELM are paid in advance of trade and other margins are paid as soon as margin calls are made by the Stock Exchanges/TMs/CMs. The period till settlement has been allowed to TMs/CMs to collect margin from cl

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