This has reference to various guidelines / clarifications issued by the Exchange on margin collection and reporting.
As per guidelines issued by the Exchange, margin can be collected in form of securities (including Mutual Fund, Government Securities and Treasury Bills) in dematerialized form actively traded on National Exchanges, not declared as illiquid securities by any of such Exchanges, with appropriate haircut. For the purpose of client mrgin collection and reporting, the member shall compute the value of such securities as per the closing rate on T-1 day as reduced by the appropriate haircut at a rate not less than the VAR margin rate of the security on that day i.e. T-1 day.
Exchanges has received representations from Member Associations that while providing collateral limit, since Clearing Corporations consider VAR margin rate at the beginning of the T Day for the purpose of valuation of margin pledge-repledge securities, the same practice of applying VAR margin rate at the beginning of T Day should also be permitted while computing the value of securities for the purpose of client mrgin collection and reporting by Trading Member.
In view of the above and in consultation with Broker’s Industry Standards Forum (ISF), members are requested to note that for the purpose of client margin collection and reporting, the member shall compute the value of securities as per the closing rate on T-1 day as reduced by the appropriate haircut at a rate not less than the VAR margin rate of the security at the beginning of T day. Detailed guideline for the same is attached herewith as Annexure A.
The provisions of notice shall be effective from May 02, 2025.
Members are advised to take note of the above and ensure compliance.
In case of any clarification required you may contact:
For and on behalf of BSE Ltd.
Sandeep Sharma Kaustubh Mundada
Asst. General Manager Asst. General Manager
Member Oversight Member Oversight
|