Regulatory Alerts2025-06-03
SEBI Circular on Automated Invocation and Sale of Margin Pledged Securities
The Securities and Exchange Board of India (SEBI) has amended its margin pledge regulations to introduce an automated combined process for invoking and selling client securities. This change addresses operational inefficiencies where invoked shares remained unsold or where un-pledging was required for client sales, thereby facilitating ease of doing business and safeguarding investor interests. The new provisions, including specific functionalities for depositories and trading members, come into force on September 5, 2025, with detailed operating guidelines to be issued by July 1, 2025.
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