SEBI Revises Stock Exchange Capital Rules: Minimum Cash Component Raised to 50% by June 2003.

The Securities and Exchange Board of India (SEBI) issued a circular revising the composition of additional capital and margins for stock exchanges. The minimum cash component is increased from 30% to 50%, to be complied with by the end of June 2003. Cash equivalents include fixed deposit receipts, bank guarantees, government securities, and certain mutual fund units, with specific haircuts applied. Eligible securities for non-cash components include Group I equity shares and mutual fund units, subject to haircuts based on Value at Risk (VaR). Exchanges must amend their regulations accordingly and report implementation status to SEBI.

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