Description
SEBI extends implementation timeline for margin obligations through pledge/re-pledge 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 representations from depositories (CDSL and NSDL) requesting additional time for system developments and end-to-end testing.
Key Points
- Original implementation date was September 1, 2025
- New implementation date is October 10, 2025
- Extension requested by CDSL and NSDL for system development and testing
- Aims to ensure smooth implementation without market disruption
- Applies to all recognized stock exchanges, clearing corporations, and depositories
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 the circular on their websites
- Appropriate systems and procedures must be implemented
- Necessary amendments to bye-laws, rules and regulations must be made
Important Dates
- August 18, 2025: Date of SEBI circular announcing extension
- October 10, 2025: New implementation deadline for margin obligations via pledge/re-pledge system
Impact Assessment
The timeline extension provides market participants with additional time to ensure system readiness and complete necessary testing. This should help prevent potential disruptions during the transition to the new margin obligation system through depositories.
Impact Justification
Timeline extension affects market infrastructure but provides additional time for smooth implementation