This has reference to Exchange notice no 20200731-7 dated July 31, 2020 with respect to Guidelines/clarifications on Margin collection & reporting.
Further Member’s attention is drawn to SEBI Circular SEBI/HO/MIRSD/DOP/CIR/P /2020/146 dated July 31, 2020 wherein SEBI has prescribed that “If TM / CM collects minimum 20% upfront margin in lieu of VaR and ELM from the client, then penalty for short-collection / non-collection of margin shall not be applicable. However, it is reiterated that Clearing Corporation shall continue to collect the upfront margin from the TM / CM based on VaR and ELM.”
In view of the same, Point A of Question no. 1 in Annexure A of the Exchange notice no 20200731-7 dated July 31, 2020 has been partially modified as below:
“A. Capital Market Segment
In capital market segment, Trading Members (TM) are required to mandatorily collect minimum 20% upfront margin in lieu of VaR and ELM from the client on an upfront basis. Other margins such as Mark-to-market margin (MTM), delivery margin, special/additional Margin or such other margins as may be prescribed from time to time, shall be collected within ‘T+2’ working days from their clients. It must be ensured that minimum 20% upfront margin is collected in advance of trade and other margins are collected/paid as soon as margin calls are made by the clearing corporations.”
Further, based on the members’ representation, following clarifications are provided for question no. 10 and 29 in Annexure A of the aforementioned Exchange notice:
Question no. 10
The valuation of G-Sec/T-Bill shall be based on closing price of G- Sec/T-Bills on NDS on T-1 day reduced by a haircut as specified by clearing corporation from time to time.
In case where clearing corporations have not specified the haircut for G-Sec/T-bills then valuation shall be based on closing price on NDS on T-1 day reduced by a haircut of 10%.
Question no. 29
Securities whose pledge is being invoked due to default of client are required to be reported in Weekly Holding submission. Members shall adhere to the following while reporting:
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Account where Securities are available
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Values to be reported under
“Member account type”
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Client Securities Margin Pledge Account
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MRGN PLEDGE
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Client Securities under Margin Funding Account
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MTF PLEDGE
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All members are advised to take note and strictly comply with the above.
In case of any clarifications, Members may contact our below officials:
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Name of officials
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Contact No
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Email ID
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Prakash Ananthanarayanan
Tushar Shetty
Josephine Baretto
Prashant Sindhwad
Ashwin Lalchandani
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022-22728895
022-22728217
022- 22728598
022-22728460
022-22725185
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bse.inspection@bseindia.com
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For and On behalf of BSE Ltd.
Kiran Sawant
Asst. Gen. Manager
(Brokers’ Supervision) |