Restriction on bank guarantees created from client funds limits new guarantees and mandates wind down with enhanced reporting and oversight. Stock brokers and clearing members are prohibited from creating new Bank Guarantees funded by clients' monies and must wind down existing such guarantees by the prescribed deadline; the prohibition excludes proprietary funds. Stock exchanges and clearing corporations must monitor positions, implement periodic reporting, submit fortnightly collateral data to the regulator, verify compliance through inspections, and require statutory-auditor certification of implementation, with exchanges amending bye-laws and reporting implementation status to the regulator. Several earlier circulars are modified to the extent inconsistent.
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Provisions expressly mentioned in the judgment/order text.
Restriction on bank guarantees created from client funds limits new guarantees and mandates wind down with enhanced reporting and oversight.
Stock brokers and clearing members are prohibited from creating new Bank Guarantees funded by clients' monies and must wind down existing such guarantees by the prescribed deadline; the prohibition excludes proprietary funds. Stock exchanges and clearing corporations must monitor positions, implement periodic reporting, submit fortnightly collateral data to the regulator, verify compliance through inspections, and require statutory-auditor certification of implementation, with exchanges amending bye-laws and reporting implementation status to the regulator. Several earlier circulars are modified to the extent inconsistent.
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