SEBI comes out with framework on segregation, monitoring of collateral at client level

Markets regulator SEBI on Tuesday came out with a framework for segregation and monitoring of collateral at client level amid instances of misuse of client collateral by trading members. Also, it has put in place a reporting mechanism that will entail disaggregated information -- segment-wise and asset type wise break-up -- of each client collateral, according to a circular.

The measures will help in further strengthening the mechanism of protection of client collateral from misuse by trading member (TM) or clearing member (CM) and default of such members and other clients.