Disaggregated collateral reporting by the Trading Members/Clearing Members
SEBI Circular and Reporting Requirements:
SEBI circular SEBI/HO/MRD2_DCAP/CIR/2021/0598, dated July 20, 2021, outlines the requirement for Trading Members/Clearing Members (TMs/CMs) to report client collateral to Clearing Corporations (CCs). This reporting must be disaggregated, meaning it provides a breakdown of the collateral by:
- Segment: This refers to the market segment where the collateral is used (e.g., Equity, Derivatives)
- Asset Type: This specifies the type of assets used as collateral (e.g., Cash, Securities)
SEBI's regulations on client collateral reporting empower you with greater transparency and control over your investments. By utilizing the web portals offered by clearing corporations, you can stay informed about your collateral placement and make informed investment decisions.
How can clients access the collateral information:
To enhance transparency and empower investors, SEBI regulations require CCs and Stock Exchanges (SEs) to provide web portal access. Through these portals, clients can view the disaggregated collateral information reported by their TM/CM.
Clearing Corporation Portals: Each clearing corporation (NCL ; NCCL ; MCXCCL ; ICCL) has its web portal. Refer to the specific circulars issued by each corporation for detailed instructions on accessing their portal.
Each clearing corporation has given the below link for the registration and viewing the disaggregated collateral details held by the member and reported by the TM/CM on their web portal. All investors can access this portal after a simple online registration process.
Benefits for Investors:
Increased Transparency: You gain a clear understanding of the collateral you provide to your broker and how it's categorized.
Enhanced Control: This information allows you to monitor your collateral placement and ensure it aligns with your investment strategy.
Improved Decision Making: By understanding your collateral situation, you can make informed decisions about your investments.