INSTITUTIONAL MECHANISM FOR PREVENTION AND DETECTION OF FRAUD OR MARKET ABUSE - Securities and Exchange Board of India (Stock Brokers) Regulations, 1992
INSTITUTIONAL MECHANISM FOR PREVENTION AND DETECTION OF FRAUD OR MARKET ABUSE - Securities and Exchange Board of India (Stock Brokers) Regulations, 1992
Networth requirements set eligibility and deposit obligations for brokers and clearing members to secure market participation. Minimum networth and segment-wise deposit requirements are prescribed for stock brokers, trading members, clearing members and self-clearing members, with ... Summary
Networth requirements set eligibility and deposit obligations for brokers and clearing members to secure market participation.
Minimum networth and segment-wise deposit requirements are prescribed for stock brokers, trading members, clearing members and self-clearing members, with members required to maintain either specified base networth or a variable networth (whichever is higher). Base networth is defined by capital and specified reserves excluding certain assets; variable networth links to clients' retained cash balances. Segment-specific deposit amounts are set for cash, equity, currency, debt, commodity derivatives and electronic gold receipts. Client funds treatment, inclusion/exclusion of accepted margin, underwriting-from-own-funds rule, and Board authority to specify or vary amounts are addressed.
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