Description

SEBI extends the implementation deadline for margin obligations via pledge/re-pledge in depository system from September 1, 2025 to October 10, 2025.

Summary

SEBI has extended the implementation timeline for its circular on ‘Margin obligations to be given by way of pledge/Re-pledge in the Depository System’ from September 1, 2025 to October 10, 2025. The extension was granted following requests from depositories (CDSL and NSDL) for additional time to complete system developments and end-to-end testing.

Key Points

  • Original implementation date: September 1, 2025
  • New implementation date: October 10, 2025
  • Extension requested by CDSL and NSDL depositories
  • Reason: Need additional time for system developments and testing
  • Applies to all stock exchanges, clearing corporations, and depositories

Regulatory Changes

No changes to the underlying regulatory requirements - only an extension of the implementation timeline for the existing SEBI circular dated June 3, 2025 on margin obligations via pledge/re-pledge system.

Compliance Requirements

  • Stock exchanges, depositories and clearing corporations must notify members/participants
  • Must disseminate information on their websites
  • Must implement appropriate systems and procedures for compliance
  • Must make necessary amendments to bye-laws, rules and regulations
  • Must ensure system readiness through end-to-end testing

Important Dates

  • October 10, 2025: New implementation deadline for margin pledge/re-pledge provisions
  • June 3, 2025: Date of original SEBI circular
  • August 18, 2025: Date of timeline extension circular

Impact Assessment

The extension provides breathing room for market infrastructure to ensure smooth implementation without disruption. This affects all market participants who will need to comply with the new margin pledge/re-pledge requirements in the depository system. The delay allows depositories to complete necessary system developments and comprehensive testing to avoid operational issues.

Impact Justification

Important regulatory timeline extension affecting all market participants but not changing core requirements