Markets regulator Sebi on Monday comes out with a fresh proposal for segregation and monitoring of collateral at client level amid instances of misuse of client collateral by trading members. Also, it has proposed to build a mechanism for reporting, dissemination and usage of information pertaining to collateral other than securities collateral received by way of pledge or repledge mechanism. Issuing a consultation paper, Sebi said that the proposed framework is aimed at ensuring protection of client collateral. The proposal comes in the wake of Karvy Stock Broking crisis where clients' shares had been pledged illegally as collateral against loan. Fincare Small Finance Bank files DRHP with SEBI, plans to raise Rs 1,330 crore via IPO Segregation of client collateral refers to the procedures that enable identification and protection of client collateral from misuse by trading or clearing member and protection from default of such member or other clients.