Mumbai, Aug 18
The Securities and Exchange Board of India (SEBI) on Monday extended the deadline for the new margin pledge and re-pledge framework within the depository system to October 10.
The rules were earlier scheduled to take effect from September 1.
"Based on the same and in order to ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to October 10," SEBI said in its circular.
The regulator said the decision was taken after receiving requests from depositories CDSL and NSDL, which sought more time to complete system development and conduct end-to-end testing.
SEBI said the extension will ensure smooth implementation without causing disruption to investors or market participants.
Under the new framework, clients’ securities will be blocked for early pay-in directly in their demat accounts when margin obligations are invoked.