refund of security deposit

SEBI has vide its circular dated 6th January, 2021 laid down guidelines for refund of security deposit of trading members on surrender of their membership. The salient features are as follows:

  1. In this regard, following is advised to all exchanges regarding refund of security deposit on surrender of membership by Trading Members:
    A. On approval of application for surrender of Trading Member’s registration by SEBI, the Exchange shall release Security Deposit of the Trading Member (engaged in trading on behalf of clients) after the period mentioned at point a) or b), whichever is earlier:
    (a) Three years from the date of receipt of surrender application by Exchange from the Trading Member (in order to meet any investor claims), or
    (b) Five years from the date of disablement of Trading Member’s trading terminals by the Exchange.
    B. On approval of application for surrender of Trading Member’s registration by SEBI, the Exchange shall release Security Deposit of the Trading Member (engaged only in proprietary trading in last three years prior to the date of application) after the period mentioned at point a) or b), whichever is earlier:
    (a) one year from the date of receipt of surrender application by exchange from the Trading Member, or
    (b) three years from the date of disablement of Trading Member’s trading terminals by the Exchange.

https://www.sebi.gov.in/legal/circulars/jan-2021/refund-of-security-deposit_48677.html

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