Description

SEBI extends the implementation timeline for margin obligations via pledge/re-pledge in depository system from September 1 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 SEBI circular on margin pledge/re-pledge obligations was dated June 3, 2025
  • Implementation deadline extended by 39 days from September 1 to October 10, 2025
  • Extension requested by both major depositories (CDSL and NSDL) for system readiness
  • Decision aimed to ensure smooth implementation without market disruption
  • All stock exchanges, depositories and clearing corporations must comply

Regulatory Changes

No changes to the underlying regulatory requirements - only the implementation timeline has been modified. The original provisions of the June 3, 2025 SEBI circular remain unchanged.

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 implemented
  • Necessary amendments to Bye-laws, Rules and Regulations required
  • All clearing members must take note and ensure compliance

Important Dates

  • August 18, 2025: SEBI circular issued extending timeline
  • August 20, 2025: NSE Clearing circular to members
  • October 10, 2025: New implementation deadline for margin pledge/re-pledge system
  • Original deadline: September 1, 2025 (now extended)

Impact Assessment

The extension provides market participants with additional time for system development and testing, reducing implementation risks. This administrative change ensures depositories can complete necessary technical preparations without rushing, ultimately protecting market stability and investor interests during the transition to the new margin pledge system.

Impact Justification

Administrative timeline extension affecting system implementation across market infrastructure