Markets regulator Securities And Exchange Board of India on Monday extended the deadline for the implementation of framework pertaining to the process of margin obligations via pledge and re-pledge within the depository system to Oct. 10.
This was scheduled to come into effect from Sept. 1, 2025.
The extension came after SEBI received representation from depositories -- Central Depository Services (India) Ltd. and National Securities Depository Ltd. -- requesting for an extension of time to carry out system developments and to ensure system readiness by carrying end-to-end testing.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
"Based on the same and in order to ensure smooth implementation without any disruption to the market players and investors, it has been decided to extend the timeline for implementation to Oct. 10, 2025," Sebi said in its circular.
Under the framework, SEBI introduced a mechanism where clients' securities, upon invocation, will be blocked for early pay-in within the client's demat account. The move will reduce chances of brokers misusing securities while ensuring a clear transaction trail.
Also, SEBI introduced a single instruction in the form of "pledge release for pay-in" where the pledge will be released and the pay-in block will be set-up immediately in the client's demat account.
Further, depositories will provide the necessary functionality for the "pledge release for pay-in" system to ensure compliance with the new norms.
Once implemented, brokers will no longer need physical or electronic instructions to process un-pledging and delivery, as the system will automatically validate the pay-in to the extent of the client's obligation.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
