Sebi extends limit for bond submission via trade, clearing members till Oct

Topics Sebi | bonds market

Amid the prevailing situation due to the COVID-19 pandemic, markets regulator Sebi on Thursday extended till October 31 the deadline for submission of undertaking-cum-indemnity bond by trading and clearing members for their bank accounts.

Through a circular, the regulator has also provided flexibility to the exchanges and clearing corporations for modifying the undertaking-cum-indemnity bond and draft undertaking wherever required.

As per the standard operating procedures (SOPs) issued by Sebi, trading and clearing members are required to provide a list of all their bank accounts to the stock exchanges and clearing corporations (CC).

The exchanges and CCs were supposed to obtain an undertaking-cum-indemnity bond from the trading members within 90 days from the date of Sebi's circular issued on July 1.

However, in view of the prevailing situation due to the pandemic and representation received from the stock exchanges, Sebi decided to extend the timeline for such submissions.

In July, Sebi came out with an SOP that enumerates actions that need to be taken when a stock exchange or a clearing corporation is of the view that a trading or a clearing member is likely to default in repayment of funds or securities to its clients.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel