Description
SEBI extends the 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 depositories
- Additional time needed for system developments and testing
- Aims to ensure smooth implementation without market disruption
Regulatory Changes
No changes to the underlying circular provisions - only the implementation timeline has been extended by 39 days to allow for proper system readiness.
Compliance Requirements
- Stock Exchanges, Depositories and Clearing Corporations must notify members/participants
- Disseminate information on their websites
- Implement appropriate systems and procedures for compliance
- Make necessary amendments to Bye-laws, Rules and Regulations
Important Dates
- Original Implementation Date: September 1, 2025
- Extended Implementation Date: October 10, 2025
- Circular Date: August 18, 2025
Impact Assessment
The extension provides market infrastructure entities additional time to ensure robust system implementation. This reduces the risk of technical issues during go-live and ensures all stakeholders are adequately prepared for the new margin obligation framework through the depository system.
Impact Justification
Timeline extension affects market infrastructure but provides necessary time for system readiness