Description
SEBI extends the implementation timeline for margin obligations through pledge/re-pledge system from September 01, 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 01, 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 was September 01, 2025
- New implementation date is October 10, 2025
- Extension requested by depositories CDSL and NSDL
- Reason: Need more time for system developments and testing
- Aims to ensure smooth implementation without market disruption
Regulatory Changes
No changes to the underlying regulatory requirements - only the implementation timeline has been extended by approximately 5 weeks.
Compliance Requirements
- Stock Exchanges, Depositories and Clearing Corporations must notify their members/participants
- Entities must disseminate information on their websites
- Appropriate systems and procedures must be established for compliance
- Necessary amendments to Bye-laws, Rules and Regulations must be made
Important Dates
- Original Implementation Date: September 01, 2025
- Extended Implementation Date: October 10, 2025
- Circular Issue Date: August 18, 2025
Impact Assessment
The extension provides necessary breathing room for market infrastructure entities to ensure system readiness. This proactive approach aims to prevent potential disruptions that could occur from rushed implementation. The delay affects the timeline for margin obligation processes through the depository system but ensures more robust implementation when the system goes live.
Impact Justification
Timeline extension affects market infrastructure but provides necessary time for system readiness