To safeguard clients’ funds, SEBI has come out with a framework that requires the upstreaming of all client funds received by stock brokers to clearing corporations. The new framework will come into effect from ________.
To safeguard clients’ funds, SEBI has come out with a framework that requires the upstreaming of all client funds received by stock brokers to clearing corporations.Under the framework, no clients’ funds will be retained by stock brokers on an end-of-day (EoD) basis. Further, clients’ funds will be upstreamed by stock brokers and clearing members to clearing corporations (CCs) only in the form of either cash, lien (a legal claim or legal right which is made against the assets that are held as collaterals for satisfying a debt ) on Fixed Deposit Receipt (FDR) or pledge of units of mutual fund overnight schemes. Other than the FDRs (liened to CCs) and mutual fund overnight scheme (pledged to CCs), any remaining client funds with brokers will be upstreamed to a CC before a stipulated cut-off time.The new framework will come into effect from July 1, 2023. With regards to upstreaming through FDRs created out of clients’ funds, the stock brokers may create FDRs out of clients’ funds only with those banks which satisfy the CC’s exposure norms. Further, every FDR created out of clients’ funds would necessarily be lien-marked to one of the CCs at all times. The tenure of such FDRs will not be more than one year and the FDR should be pre-terminable. Besides, the principal amount of the FDR will remain protected throughout the tenure, even after accounting for all possible pre-termination costs.
State true/false
A SQL query will not work if there are no indexes on the relations
Which layer of the OSI model is responsible for establishing, managing, and terminating network connections?
Which technique is commonly used for visualizing the flow of data within a system in the form of diagrams?
What is the function of the bootloader in an operating system?
How do you read input from the user in a shell script?
Which one of the following is used for artificial intelligence?
What is the primary advantage of using a snapshot-based backup method over traditional backup methods?
What does PHP stand for?
What is the decimal equivalent of the binary number 10101?
What is the routing table in a router used for?