What is the purpose of the SEBI and NSE Clearing Ltd. circulars regarding the segregation and monitoring of collateral?

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.