New Delhi, Jan 6: Markets regulator Sebi on Wednesday came out with a timeline for exchanges regarding refund of security deposit on surrender of membership by trading members.

For Trading Members (TMs) engaged in trading on behalf of clients, on approval of surrender application by Sebi, exchanges need to release the security deposit after three years from the date of receipt of surrender application by the exchange or five years from the date of disablement of TM's trading terminals, whichever is earlier.

Sebi also gave a timeline in its circular for refund of security deposit of TMs engaged only in proprietary trading in the last three years prior to the date of application.

On approval of surrender application by Sebi, the exchange shall release security deposit after one year from the date of receipt of surrender application or three years from the date of disablement of TM's trading terminals by the exchange, whichever is earlier.

Exchanges are required to communicate to the regulator the status of implementation of the circular in the monthly development reports, it added.