SEBI Relaxes Rules To Offer Relief Amid Covid19 Lockout

To provide relief to market participants amid coronavirus pandemic, the market regulator SEBI has relaxed few of the rules. So, the various relaxations provided are as follows:

SEBI Relaxes Rules To Offer Relief Amid Covid19 Lockout

- Penalty on non-collection or short collection of margins by brokerage houses will now come into effect from April 30, 2020 instead of April 1. Nonetheless, reporting of margins in cash and derivatives segments would be carried on by the broker community.

- Brokers not keeping call records of orders or instructions received from clients due to work from alternate places shall be expected from penal provisions till March 2020.

- Further, the effective date of SEBI's guidelines relating to valuation of money market and debt instruments on the basis of mark-to-market valuation stands extended by one month's time to May.

- SEBI's circular on risk management framework for liquid mutual fund scheme has been also extended by one month.

- Trading members will be put in risk reduction mode as and when they utilize 90% of the capital towards margins. Earlier this threshold limit was 85%.

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