On Sep. 20, IND BSE, IND NSE advised on unidentified credits/funds.
IND BSE, IND NSE published notification offering clarification with regard to the reporting of segregation and monitoring of collateral at client level submission.
Follows IND SEBI Jul. 2021 framework on segregation, monitoring collateral, #105206.
Background
Per the SEBI framework, members report upfront segment-wise allocation of clients' collateral to clearing corporations in the respective client's unique client code (UCC).
IND BSE, IND NSE have received representations from the Broker’s Industry Standards Forum (ISF) that members are unable to allocate and report unidentified credits/funds received by member lying in suspense or other accounts maintained by the member.
This arises because there is no specific UCC stipulated under which such unidentified credits/funds received by the member are required to be allocated and reported.
Clarification
Clarification issued in view of the comments from ISF and after consideration by SEBI.
Members shall create a designated UCC numbered SUSPE1234N on the PAN of the member in the back office under which such unidentified credits or suspense account funds shall be allocated and reported to clearing corporations (CCs).
Members shall keep unidentified credits or suspense account funds upstreamed to CCs.
Members shall not create this UCC in the UCC database of exchanges and accordingly, orders should not be permitted by trading members on the said UCC.
Clarification is also provided in relation to the timing of reporting per SEBI framework.
Effectiveness
Members are advised to ensure compliance on or before Dec. 19, 2024.
Sep. 23, 2024 Compliance Department
On Sep. 23, 2024, IND NSE compliance department published similar circular as above.
Regulators
IND BSE; IND NSE
Entity Types
Auditor; B/D; Depo; Exch; IA; Inv Co
Reference
Cir NCL/CMPL/64088, 32/2024, 9/23/2024; Cir 66/2024, NSE/INSP/64053, Nt 20240920-49, 9/20/2024
