Description
SEBI extends the implementation timeline for margin obligations through 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’ dated June 03, 2025. The implementation date has been moved from September 01, 2025 to October 10, 2025 to allow depositories sufficient time for system development and end-to-end testing.
Key Points
- SEBI circular SEBI/HO/MIRSD/MIRSD-PoD/P/CIR/2025/118 dated August 18, 2025 extends implementation timeline
- Original implementation date was September 01, 2025
- New implementation date is October 10, 2025
- Extension requested by depositories (CDSL and NSDL) for system readiness
- 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 39 days to allow for proper system preparation.
Compliance Requirements
- Stock Exchanges, Depositories and Clearing Corporations must notify 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
- All margin obligations must be given via pledge/re-pledge in depository system by the new deadline
Important Dates
- Original Implementation Date: September 01, 2025
- Extended Implementation Date: October 10, 2025
- SEBI Extension Circular Date: August 18, 2025
- NSE Circular Date: August 19, 2025
Impact Assessment
The extension provides operational relief to market participants and depositories, allowing additional time for system development and testing. This should reduce implementation risks and ensure smoother transition to the new margin obligation framework. The delay may temporarily maintain existing operational processes but does not change the fundamental regulatory requirement for pledge/re-pledge mechanisms in the depository system.
Impact Justification
Timeline extension provides operational relief but maintains regulatory compliance requirement