FIA has submitted comments to the Securities and Exchange Board of India’s consultation paper on proposals to safeguard clients’ funds that are placed with stock brokers/clearing members (CMs).
FIA expresses concerns that the proposed requirements could have negative effects on the timing and operational complexity of returning funds to clients, hindering CMs' ability to dynamically meet the needs of their clients.
Additionally, FIA suggests that the proposals could lead to additional risks, such as concentration and systemic risk, counterparty risk considerations, and commercial risk implications.
FIA also recommends that funds from institutional clients be exempt from the proposed requirements.
- Customer Protection \ Segregation
- Regulatory Responses