STARTUP LEGAL2 Sept 2026
Indian Kanoon - Search engine for Indian Law
A case before the Supreme Court asks whether a professional clearing member or the trading member must pay investors who lost securities in F&O trading. Investors blame the clearing member for selling collateral without checking their positions. The clearing member says it had no contract with those investors. SEBI has since introduced daily clearing to improve transparency.
Key Statutory Highlights
- Investors lost collateral securities when their trading member defaulted and the clearing member sold them.
- The clearing member argued it had no contract with the investors and no way to verify their positions then.
- SEBI has now introduced a daily clearing regime so credit and debit positions are known to everyone in the chain.
Actionable Advice for Taxpayers / Founders:If you trade in futures and options, review your broker's financial health and understand how your collateral is protected in case of a default.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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