MANU/SSMD/0016/2022

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : SEBI/HO/MRD2/DCAP/P/CIR/2022/60

Date : 10.05.2022

Notification/ Circulars Referred : Circular SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020 MANU/SDER/0009/2020;Circular SEBI/HO/CDMRD/CDMRD DRM/P/CIR/2021/689 dated December 16, 2021 MANU/SDER/0014/2021

Subject: Capital Market

Industry: Trading

Citing Reference:
Circular SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020 MANU/SDER/0009/2020  Referred

Circular SEBI/HO/CDMRD/CDMRD DRM/P/CIR/2021/689 dated December 16, 2021 MANU/SDER/0014/2021  Referred

To

All Recognized Stock Exchanges and Clearing Corporations

Dear Sir/ Madam,

Changes to the framework to enable verification of upfront collection of margins from clients in cash and derivatives segments

1. SEBI, vide circular SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020, prescribed the framework to enable verification of upfront collection of margins from clients in cash and derivatives segments.

2. Further, SEBI, vide circular SEBI/HO/CDMRD/CDMRD DRM/P/CIR/2021/689 dated December 16, 2021, inter alia, modified the aforesaid framework prescribed vide said circular dated July 20, 2020, providing for additional snapshots for commodity derivatives segment.

3. Clause (i) of Annexure to the said circular dated July 20, 2020, inter-alia, requires Clearing Corporations to send snapshots of client wise margin requirement to TMs/CMs for them to know the intra-day margin requirement per client in each segment.

4. In view of the representations received from m........