Sebi issues norms on margin trading facility

The Securities and Exchange Board of India (Sebi) has issued a comprehensive framework on margin trading facility (MTF) including disclosure norms and eligibility requirements for brokers to provide it to clients. The facility is executed with borrowed funds or securities that enable investors to take exposure in the market over and above their resources. The markets regulator said in a circular that only corporate brokers with networth of atleast Rs 3 crore are eligible for providing MTF to their clients. The brokers would have to submit to the exchange a half yearly certificate from an auditor confirming the net worth.For providing MTF,a broker may use his own funds or borrow from scheduled commercial banks or NBFCs regulated by the Reserve Bank of India.

Business Standard New Delhi, 15th June 2017

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RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

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