Refund of security deposit to Broker Dealers on surrender of membership

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CIRCULAR IFSCA/CMD-DMIIT/BD/2022-23/1

                          June 28, 2022 

To,
All Stock Exchanges in the International Financial Services Centre (IFSC) All Broker Dealers in the International Financial Services Centre (IFSC)

Dear Sir/Madam,

Sub: Refund of security deposit to Broker Dealers on surrender of membership

1. IFSCA has received representations from various market participants regarding the refund of security deposits upon surrender of registration. Subsequent to discussions with the Stock Exchanges, it has been decided as follows:

a) On approval of application for surrender of Broker Dealer’s registration by IFSCA, the Stock Exchange shall release Security Deposit of the Broker Dealer (engaged in trading on behalf of clients) after twelve months from the date of approval of surrender application by IFSCA.

b) On approval of application for surrender of Broker Dealer’s registration by IFSCA, the Exchange shall release Security Deposit of the Broker Dealer (engaged only in proprietary trading for the last three years prior to the date of application of surrender) after six months from the date of approval of surrender application by IFSCA.

This circular is issued in exercise of powers conferred by section 12 of the International Financial Services Centres Authority Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres.

A copy of this circular is available on the website of the International Financial Services Centres Authority at www.ifsca.gov.in

Yours faithfully,

Praveen Kamat Deputy General Manager Division of Market Infrastructure Institutions & Technology Capital Markets Department email: praveen.kamat@ifsca.gov.in Tel: +91-079-61809820