Allowing securities funded through cash collateral as maintenance margin for Margin Trading Facility (MTF)

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....llateral as maintenance margin for Margin Trading Facility (MTF). 1. SEBI has received representations from market participants through the Industry Standards Forum (ISF) to relax the requirement, under Chapter 1 at Para 4.3.3.1 of the Master Circular (Stock Exchanges and Clearing Corporations) dated October 16, 2023, allowing securities funded through cash collateral to be considered as mainte....

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....'Funded stocks') shall be identifiable separately and no comingling shall be permitted for the purpose of computing funding amount. Further, in case the broker has collected cash collateral from the client in form of margin for availing margin trading facility and the Trading Member has given the said cash collateral to the Clearing Corporation (CC) towards settlement obligation of the said client....

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....f the SEBI Master Circular on Stock Exchanges and Clearing Corporations dated October 16, 2023 is modified to allow reporting of exposure under Margin Trading Facility by the Trading Members on or before 6:00 PM on T+1 day. 6. The Stock Exchanges are accordingly advised to: 6.1. make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above deci....