MANU/SDER/0009/2020

Ministry : Securities and Exchange Board of India

Department/Board : Market Regulation Department

Circular No. : SEBI/HO/MRD2/DCAP/CIR/P/2020/127

Date : 20.07.2020

Notification/ Circulars Referred : Circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 MANU/SDER/0004/2015;SEBI/HO/CDMRD/DRMP/CIR/P/2016/80 dated September 07, 2016 MANU/SMIS/0004/2016;Circulars CIR/DNPD/7/2011 dated August 10, 2011 MANU/SDER/0016/2011;CIR/HO/MIRSD/DOP/CIR/P/2019/88 dated August 01, 2019 MANU/SSMD/0027/2019;Circular SEBI/HO/CDMRD/DRMP/CIR/P/2019/149 dated November 29, 2019 MANU/SDER/0012/2019

Citing Reference:
Circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 MANU/SDER/0004/2015  Referred

SEBI/HO/CDMRD/DRMP/CIR/P/2016/80 dated September 07, 2016 MANU/SMIS/0004/2016  Referred

Circulars CIR/DNPD/7/2011 dated August 10, 2011 MANU/SDER/0016/2011  Referred

CIR/HO/MIRSD/DOP/CIR/P/2019/88 dated August 01, 2019 MANU/SSMD/0027/2019  Referred

Circular SEBI/HO/CDMRD/DRMP/CIR/P/2019/149 dated November 29, 2019 MANU/SDER/0012/2019  Referred

To

All Recognized Stock Exchanges and Clearing Corporations
(except Stock Exchanges and Clearing Corporations in
International Financial Services Centre)

Dear Sir/Madam

Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segments

1 With respect to equity derivatives and currency derivatives segments, Stock Exchanges/Clearing Corporations have mandated clearing members/trading members to collect applicable margins from their clients/constituents on an upfront basis. Similarly, SEBI Circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and SEBI/HO/CDMRD/DRMP/CIR/P/2016/80 dated September 07, 2016 directed to National Commodity Derivatives Exchanges, inter alia, require members to collect Initial Margin and ELM upfront from their clients as a........