Upstreaming of clients' funds - late receipts frozen until next upstreaming window; FDRs limited and pre-terminable. Clients' funds must be upstreamed to Clearing Corporations in cash, by lien on pre-terminable FDRs of tenor not exceeding one year and one day, or by pledge of mutual fund overnight scheme units. Late receipt of client funds is permitted provided those funds are frozen against debit until the next day's upstreaming window and exchanges ensure such balances remain minimal and legitimate. Existing longer-tenor FDRs created before the prior circular may be grandfathered until maturity, with renewals required to meet the revised FDR conditions.
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.
Upstreaming of clients' funds - late receipts frozen until next upstreaming window; FDRs limited and pre-terminable.
Clients' funds must be upstreamed to Clearing Corporations in cash, by lien on pre-terminable FDRs of tenor not exceeding one year and one day, or by pledge of mutual fund overnight scheme units. Late receipt of client funds is permitted provided those funds are frozen against debit until the next day's upstreaming window and exchanges ensure such balances remain minimal and legitimate. Existing longer-tenor FDRs created before the prior circular may be grandfathered until maturity, with renewals required to meet the revised FDR conditions.
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