Plea in Gujarat High Court challenges SEBI circulars mandating collection of upfront margin from investors by Trading Members

The petitioner contends that the circulars impose arbitrary penalties, is impractical and excessive considering its purported motive to prevent the misuse of client/ investor securities by the Trading Member or broker.

The Gujarat High Court has issued notice in plea challenging the Constitutionality of circulars issued by the Securities and Exchange Board of India (SEBI) which require Trading Members to ensure the collection of an upfront margin from investors/clients before making trades (Hardik Manharlal Kotecha v. SEBI and anr).

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