What is the purpose of the SEBI and NSE Clearing Ltd. circulars regarding the segregation and monitoring of collateral?
The purpose of the SEBI circular (SEBI/HO/MRD2_DCAP/CIR/2021/0598) dated July 20, 2021, and the NSE Clearing Ltd. (NCL) circular (NCL/CMPL/49348) dated August 20, 2021, is to ensure transparency and visibility of client-wise collateral at all levels—Trading Member (TM), Clearing Member (CM), and Clearing Corporation (CC).
These circulars mandate a reporting mechanism for both cash and non-cash collaterals to enhance monitoring and management.