Depositories and clearing corporations on Monday said the new margin pledge process, which kicked in from September 1, has now been fairly stabilised.
"Significant amount of margin pledges / repledges continue to be processed seamlessly since September 1, 2020. The new margin pledge process has now been fairly stabilised," according to a joint statement issued by depositories — CDSL and NSDL and clearing corporations — ICCL and NSE Clearing Ltd.
The new framework on share pledging/repledging was implemented from September 1. This comes after markets regulator Sebi rejected stock brokers' association Anmi request to extend the deadline.
The Association of National Exchanges Members of India (Anmi) on last Thursday had requested Sebi to postpone the penalty provisions on the cash and derivative segment till September 15, saying systems were not geared and tested fully, in spite of the assertions of market infrastructure institutions.
In the new system, stock brokers will have to collect margins from investors upfront for any purchase or sale of shares and failure to do so will attract a penalty.
In its letter, Anmi had mentioned that there were inordinate delays happening at each level of the margin pledge process with clearing corporations and depositories.