Sebi on Thursday directed depositories to strengthen norms for the creation and invocation of pledges of securities by introducing clearer undertakings, a standardised pledge request type, and necessary notifications when a pledge is invoked, in step with the Indian Contract Act.
Underneath this, pledge request varieties should embody undertakings from each the pledger and pledgee, together with a dedication by the pledgee to offer cheap discover earlier than promoting pledged securities, the markets regulator mentioned in a round.
Sebi has additionally mandated a standardised pledge request type throughout depositories and required them to ship notifications to each events when a pledge is invoked, confirming that the pledgee has been recorded because the useful proprietor.
The brand new norms shall be applied on or earlier than April 6, 2026.
(This story has not been edited by NDTV employees and is auto-generated from a syndicated feed.)
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