Margin requirements for derivatives: compulsory client margin components defined and liquid net worth computation clarified. SEBI requires Clearing Members and Trading Members to collect and report client margins for Equity Derivatives including initial margin, exposure margin/extreme loss margin, calendar spread margin and mark-to-market settlements, with Exchanges/Clearing Corporations able to prescribe additional margins. For equity derivatives, liquid net worth of a clearing member is to be computed by deducting initial margin and exposure margin/extreme loss margin from its liquid assets. Exchanges and Clearing Corporations must update systems and rules, notify members, publish the circular, and report implementation to SEBI.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Margin requirements for derivatives: compulsory client margin components defined and liquid net worth computation clarified.
SEBI requires Clearing Members and Trading Members to collect and report client margins for Equity Derivatives including initial margin, exposure margin/extreme loss margin, calendar spread margin and mark-to-market settlements, with Exchanges/Clearing Corporations able to prescribe additional margins. For equity derivatives, liquid net worth of a clearing member is to be computed by deducting initial margin and exposure margin/extreme loss margin from its liquid assets. Exchanges and Clearing Corporations must update systems and rules, notify members, publish the circular, and report implementation to SEBI.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
