SEBI sets out deposit norms for members in debt segment

December 24, 2013

The Securities and Exchange Board of India (SEBI) sets out minimum deposit requirements for members in the debt segment of the stock exchanges.

As per the norms for stock brokers and proprietary trading members, the base minimum capital requirements will be applicable for the debt segment as well.
As per the profile of the members, the base minimum deposit requirements range from Rs 10 lakh to Rs 50 lakh for members of stock exchanges having nation-wide trading terminals.
For Clearing Members (CM) and Self Clearing Members (SCM) the deposit shall be Rs 10 lakh. No exposure shall be granted against such deposit requirement of the CM/SCM.
No deposit will required from members seeking registration in the debt segment if they are already members of another segment on the stock exchange.
No deposits would be applicable in case, the clearing members ‘clears and settles trades only on gross basis for both securities and funds, and where no settlement guarantee is provided by the clearing corporation.