Sebi Eases Entry Norms For Mkt Entities For Debt Membership

Wednesday, June 26, 2013
Print Print Email Email
News Content Image

Bangalore: As part of efforts to boost the country's debt market, market regulator Sebi eased the entry norms for market entities and waived off the deposit and annual fee for those already registered for other segments.

For membership of debt segment, the Securities and Exchange Board of India (Sebi) said that no additional deposit and annual fee would be required for stock brokers or clearing members who are already members of clearing corporation.

In case of those entities, who are not a stock broker, clearing member, the deposit requirement would be Rs.10 lakh.

Besides, such entities are also required to pay annual fee of Rs.50,000 till their registration. Sebi said these requirement may be reviewed after a period of five years.

After introduction of debt segment on bourses, Sebi said, "market feedback indicated need for further clarity and ease of participation as the debt segment is in  nascent stage of evolution and needs further impetus to bring it at par with the other segments of the exchange."

For membership of debt segment, the net worth of regulated entities would be computed as specified by their sectoral regulator, Sebi said in a statement after the board meeting.

The regulator, earlier this year, had come out with guidelines for setting up a separate debt segment on bourses where entities like banks and pension funds can also execute trades.

Sebi said debt segment would provide separate trading, reporting, membership, clearing and settlement rules.

In another decision, Sebi's board has approved the proposal to amend the securities contracts regulation related to stock exchanges and clearing corporations.

The move would provide sound legal basis for netting, settlement finality (point of time after which a settlement is final and irrevocable) and right of clearing corporations over collaterals.

Also Read:
5 Indian Companies Among World's Most Valuable Brands
Coffee Chains; A Growing Business In India

Source: PTI
Looking For Loan? Let us Help you !!!
Loan Amount
Annual Income
Preferred banks
Type the characters you see in the picture
Brookfield to buy RIL E-W Pipeline
Canadian investor Brookfield has acquired the loss-making East-West Pipeline Ltd from Mukesh Amba..
Bharti Airtel board approves
Telecom major Bharti Airtel on Thursday said its board of directors has approved fund raising ..
90% of developing economies
Ninety per cent of developing economies, including India are falling behind or are at risk of fall..
Banks need to raise own capital
Public Sector Banks (PSBs) may raise capital themselves to meet regulatory and growth ..