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NOTICES
Notice No.   20240313-35   Notice Date   13 Mar 2024
Category   Compliance   Segment   General
Subject   Discontinuation of Reporting of Client Level Cash and Cash Equivalent Balances
 
Content

This has reference to the Exchange Notices 20200210-48 dated February 10, 2020 and 20220602-43 dated June 02, 2022 on reporting of day wise Client Level Cash and Cash Equivalent Balances by members to Exchange through Application Programming Interface (API) on weekly basis.

In accordance with SEBI circular SEBI/HO/MRD2_DCAP/CIR/2021/0598 dated July 20, 2021, Exchange notices 20210922-64 dated September 22, 2021 and 20211022-44 dated October 22, 2021 on segregation and monitoring of collateral at client level, members are required to submit the relevant details, as sought, to their respective Clearing Members in order to enable them to submit the same to Clearing Corporations. The trading members who are self-clearing members are required to report said data to Clearing Corporations. 

In order to utilize the aforesaid submission by Exchanges for supervisory activities and with an objective to discontinue the Cash and Cash Equivalent submission being reported by trading members to Exchanges, Clearing Corporations in consultation with Exchanges had revised the reporting format of segregation and monitoring of collateral at client level with inclusion of certain additional columns/details which are reported in Cash & Cash Equivalent submission.

Further, the Exchange vide notice 20230720-39 dated July 20, 2023 informed members that data reported by them towards segregation and monitoring of collateral at client level submission to clearing member or clearing corporations as case may be, is used by the Exchange also for undertaking supervisory activities.           

As the Exchange has started using such submission for the supervisory activities and in order to ease out the compliance burden of the members, the Exchange has decided to discontinue the requirements of reporting of day wise Client Level Cash and Cash Equivalent Balances by members from March 18, 2024 and accordingly, period of last submission which would be applicable to members for weekly Cash and Cash Equivalent Balances reporting shall be week ending March 16, 2024 due date of the same shall be March 21, 2024.

However, members are strictly advised to report correct data in the segregation and monitoring of collateral at client level submission to their Clearing Members or Clearing Corporations as case may be, in accordance with the guidelines issued by Clearing Corporations/ Exchanges from time to time.

Members attention is also drawn to the Exchange notice 20210226-54 dated February 26, 2021 wherein it was mentioned that the financial ledger balance (Clear) in Cash & Cash Equivalent and securities/ commodities holding in Holding Statement as of Saturday reported by the members on weekly basis shall be disseminated by the Exchange to the clients via SMS/Emails on as is basis. 

In light of discontinuation of Cash & Cash Equivalent submission, the financial ledger balance (Clear) of Saturday as reported by members in submission of segregation and monitoring of collateral at client level to Clearing Corporations/Clearing Members on daily basis and securities/ commodities holding of Saturday as reported by members in Holding Statement to the Exchange on daily basis shall be disseminated by the Exchange to the clients via SMS/Emails on as is basis from the week ending  March 02, 2024 and thereafter.

Further, it has been observed that certain members are not making submission of segregation and monitoring of collateral at client level to Clearing Members /Clearing Corporations of Saturday. In view of the same, members are advised to ensure that submission of segregation and monitoring of collateral at client level of Saturday is also made to Clearing Members /Clearing Corporations. 


Members are advised to take note of the circular and comply.

In case of any clarifications, members may contact us on details given as under:

 

Contact Nos.

Email ID

022- 2272 8435/5785

bse.inspection@bseindia.com

For and on behalf of BSE Ltd.

 

Hiteshkumar Desai                                         Kaustubh Mundada

General Manager                                            Asst. General Manager

Inspection                                                        Inspection