FII collateralisation: government and AAA sovereign securities accepted for cash market margins, but cross margining with derivatives barred. FIIs may offer domestic government securities and foreign sovereign AAA-rated securities, in addition to cash, as collateral to recognized stock exchanges for cash market transactions; cross-margining between cash and derivative segments for such securities is not permitted. Stock exchanges must amend bye-laws, inform member brokers/clearing members, publish the changes, and report implementation status monthly, under the regulator's statutory powers to protect investors and regulate the market.
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.
FII collateralisation: government and AAA sovereign securities accepted for cash market margins, but cross margining with derivatives barred.
FIIs may offer domestic government securities and foreign sovereign AAA-rated securities, in addition to cash, as collateral to recognized stock exchanges for cash market transactions; cross-margining between cash and derivative segments for such securities is not permitted. Stock exchanges must amend bye-laws, inform member brokers/clearing members, publish the changes, and report implementation status monthly, under the regulator's statutory powers to protect investors and regulate the market.
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