Corporate Law Daily
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Earlier, SEBI vide circular no. dated July 20, 2020, prescribed the framework to enable verification of upfront collection of margins from clients in the cash and derivatives segment. Thereafter, the SEBI modified the framework and specified that the margin requirements for the intra-day snapshots in derivatives segments (including commodity derivatives) should be calculated based on the fixed Beginning of Day (BOD) margin parameters.
However, no change was specified in the methodology of determination and collection of the client's End of Day (EOD) margin obligation. Various representations were received from market participants and stakeholders regarding the same.
Accordingly, the SEBI has decided that End of Day (EOD) margin collection requirements from clients in derivatives segments shall also be calculated based on the fixed Beginning of Day (BOD) margin parameters.
Further, SEBI has clarified that the above-mentioned change is only for verification of the upfront collection of margins from clients. The circular shall be effective within three months from the issue date.
Based on the recommendations of the Alternative Investment Policy Advisory Committee (AIPAC), SEBI has mandated Alternative Investment Funds (AIFs) to undertake at least 10% of their total secondary market trades in corporate bonds by value in a month by placing/seeking quotes on Request for Quote (RFQ) platform.
This platform is meant for the execution & settlement of trades. Further, SEBI has clarified that all transactions in Corporate Bonds where AIFs is on both sides of the trade shall be executed through the RFQ platform in a ‘one-to-one’ mode.
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Earlier, SEBI required only Mutual Funds, PMS and Stock Brokers to carry out trades in corporate bonds on the RFQ platform, aiming to increase liquidity, transparency and disclosure requirements in secondary market trading. This circular shall be applicable w.e.f 01.01.2023.
The Ministry of Finance has notified the Debts Recovery Tribunals and Debts Recovery Appellate Tribunals Electronic Filing (Amendment) Rules, 2023. An amendment has been made to rule 3 of the existing rules.
As per the amended norms, e-filing of pleadings by applicants before DRT/DRAT is made mandatory without any limit. Further, any other form of filing shall not be taken into the record. Earlier, the Govt. mandated e-filing of pleadings before the DRT/DRAT only if the debt to be recovered is Rs. 100 crores or more.
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