New Delhi: Sebi on Friday came out with timelines as well as conditions for implementation of uniform membership structure in equity derivatives and cash segments.The membership structure applicable in equity derivatives segment would also be implemented in cash segment from April 1, watchdog said in a circular.It would be for trading member, self-clearing member, clearing member and professional clearing member."Unification of membership structure across equity cash and derivatives segments of stock exchanges is vital to facilitate ease of doing business," circular said.Stock brokers in cash segment who are already registered as a self-clearing member or as a clearing member in derivatives segment would "automatically" have same status in cash segment from April 1, 2019.The professional clearing members would be treated same in both segments.Currently, stock brokers in cash segment act as both trading as well as self-clearing members but in derivatives segment they are separate entities.Stock brokers, not yet registered as self-clearing member or clearing member, in derivatives segment, can discharge same work in cash segment subject to certain conditions.Such entities would have to comply with networth requirement on or before September 30, 2019.Those failing to meet requirement would continue as a trading member in cash segment subject to a condition.
They have to tie up with a clearing member or professional clearing member on or before September 30 to clear and settle their trades."The existing PCMs in derivatives segment shall become PCMs in cash segment with effect from April 01, 2019."However, existing Custodian Clearing Member in cash segment shall continue to act as Custodian Clearing Member in cash segment only," Sebi added.In June 2018, Sebi board decided to do away with category of sub-brokers as market intermediaries.