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TMI BlogModification to Standard Operating Procedure in the cases of Trading Member / Clearing Member leading to defaultX X X X Extracts X X X X X X X X Extracts X X X X ..... Modification to Standard Operating Procedure in the cases of Trading Member / Clearing Member leading to default 1. SEBI vide circular no. SEBI/HO/MIRSD/DPIEA/CIR/P/2020/115 dated July 1, 2020 had specified the Standard Operating Procedure enumerating the steps to be taken by the Stock Exchanges ( SEs ), Clearing Corporations ( CCs ) and Depositories in cases where SE / CC is of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to pay small investors out of available funds and own resources (movable and immovable) under the supervision of the ISE/ SEs. Further, the unencumbered deposits available with the SEs/ CCs, after adjusting for any dues of the SE / CC and maintaining the minimum BMC, shall also be utilised for settling the credit balance of investors starting from the smallest amount. Such amount shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regard, the related parties of the TM shall not be considered for settlement, for which the TM shall provide an undertaking to the SEs/ CC. TM shall provide indemnity to the SEs to make available the funds to meet any shortfall in meeting investor s claim (other than those who have withdrawn their claim). Clients withdrawing their claim will have to submit unconditional withdrawal letter to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) of the Securities and Exchange Board of India Act, 1992 read with section 10 of the Securities Contract (Regulation) Act, 1956 and Section 19 of the Depositories Act, 1996 , to protect the interests of investors in securities and to promote the development of and to regulate the securities markets. 7. This Circular is issued with the approval of competent authority. 8. This Circ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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