Equitable distribution of client funds: priority full payment to smaller balances, remaining credits paid pro rata under supervised settlement. The SOP amendment requires supervised settlement of client credit balances by using available member funds and market infrastructure unencumbered deposits, after dues and buffer maintenance. Payments begin with the smallest balances: amounts below a specified threshold paid in full where funds permit, amounts above that threshold paid pro rata from remaining funds. Market infrastructures may invoke bank guarantees, encash FDRs, net client balances across exchanges and settle in tranches. Members must provide proof of payment, exclude related parties by undertaking, indemnify market infrastructures against shortfalls, and allow client withdrawals by unconditional letter; implementation is required within a set timeline.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Equitable distribution of client funds: priority full payment to smaller balances, remaining credits paid pro rata under supervised settlement.
The SOP amendment requires supervised settlement of client credit balances by using available member funds and market infrastructure unencumbered deposits, after dues and buffer maintenance. Payments begin with the smallest balances: amounts below a specified threshold paid in full where funds permit, amounts above that threshold paid pro rata from remaining funds. Market infrastructures may invoke bank guarantees, encash FDRs, net client balances across exchanges and settle in tranches. Members must provide proof of payment, exclude related parties by undertaking, indemnify market infrastructures against shortfalls, and allow client withdrawals by unconditional letter; implementation is required within a set timeline.
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