SEBI Extended Timeline for Implementation of Margin Pledge-Repledge Framework to October 10, 2025.
Banking & Finance
In August 2025, the Securities and Exchange Board of India (SEBI) announced the extension of the implementation timeline for the margin pledge-repledge framework. The new date for compliance has been shifted from September 1, 2025 to October 10, 2025, providing additional time for market participants to adapt.
- The Securities and Exchange Board of India (SEBI) issued this revised deadline through a circular under powers granted by Section 11(1) of the SEBI Act, 1992, read with Regulation 30 of Chapter VII of SEBI (Stock Brokers) Regulations, 1992. The objective of this extension is to ensure smoother implementation, reduce misuse of client securities by brokers, and maintain a transparent transaction trail.
- The framework was originally introduced in June 2025, mandating that all margin obligations in equity and derivatives segments must be discharged exclusively through the depository system of pledges and re-pledges. This mechanism ensures client securities are not misused by brokers and provides a secure pay-in process.
- A major feature of the framework is automated invocation, under which once a client’s margin-pledged securities are invoked, they are immediately blocked for early pay-in within the client’s demat (dematerialised) account. This automation eliminates the risk of delay and ensures a clear audit trail in the transaction cycle.
Main Point :- (i) SEBI also introduced a new feature called Pledge Release for Pay-in, which allows pledged securities to be released instantly and the pay-in block to be set up in the demat account of the client. This reduces the need for multiple manual instructions and enables seamless compliance through the depository system.
(ii) The move is expected to significantly reduce the misuse of pledged securities by brokers and improve investor confidence. Depositories have also been directed to create the required functionality for smooth execution of this process.
(iii) Once fully implemented, brokers will no longer be required to issue separate electronic instructions for un-pledging and delivery, as the system itself will validate and complete the transaction obligations automatically.
About SEBI
Chairperson: Tuhin Kanta Pandey
Headquarter : Mumbai
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