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
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 market participants and based on deliberations with various stakeholders, it has been decided that the margin requirements to be considered for the intra-day snapshots, in derivatives segments (including commodity derivatives), shall be calculated based on the fixed Beginning of Day (BOD) margin parameters. The BOD margin parameters would include all SPAN margin parameters as well as ELM requirements.
5. There shall be no change in methodology of determination and collection of End of Day (EOD) margin obligation of the client. Also, th........