9911796707
TMI Blog2025 (1) TMI 1155X X X X Extracts X X X X X X X X Extracts X X X X ..... heir respective names and the Petitioner is required to provide details of the same to Respondent Nos. 2 to 4. HELD THAT:- Petitioner has not interpreted the impugned circulars correctly. Since the Petitioner is a Trading Member (and not a depository participant), the Petitioner does not need a DP license. The impugned circulars do not mandate the holding of a DP licence by a broker engaged solely in broking activity and not engaged in the activity of a DP. Hence, no grievance survives as far as this issue is concerned. Holding demat accounts in their respective names - Respondent No. 1 has, by an email addressed to the stock exchanges, clarified that clients dealing exclusively in index derivatives and providing their margins through cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent Nos. 1 to 5. 2. Petitioner No. 1, is a registered stockbroker which provides its clients a platform to trade in the equity derivatives segment, including index derivatives and stock derivatives. Petitioner No. 1 maintains that 95% of the trades on its platform by its clients are in index derivatives. 3. Respondent No. 1 has, by the Impugned Circular No. 1 dated 5th June 2024, mandated the payout of securities directly to clients' demat account by clearing corporations and directed the stock exchanges and clearing corporations to implement the same. Respondent Nos. 2 to 5 have issued the other impugned circulars in pursuance and implementation of this direction. 4. The Petitioners have, in essence, challenged the impugned circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not engaged in the activity of a DP. Hence, no grievance survives as far as this issue is concerned. 7. As regards the contention recorded in paragraph 4(b) above, Respondent No. 1 has, by an email dated 13th January 2025 addressed to the stock exchanges, clarified that clients dealing exclusively in index derivatives and providing their margins through cash only are not required to hold demat accounts in the equity derivative segment. The concerned broker is, however, required to ensure that a client dealing in index derivatives does not deal in any other product which requires physical delivery and that he pays his margin only in the form of cash. In furtherance of the said e-mail dated 13th January 2025 issued by Respondent No. 1, Res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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