Margin requirements revised: sale-side margins withdrawn, price band removed and upfront margin collection threshold clarified. The circular withdraws the temporary sale-side margin requirement on financial institutions, FIIs, banks and mutual funds that was based on a minimum VaR differential, and withdraws the temporary 10% price band on selected derivative-underlying stocks. The 10% upfront margin requirement for clients (excluding FIs, FIIs, MFs) is narrowed so brokers collect it only where the resulting margin reaches the specified collection threshold; certification of collection will be carried out by the compliance officer under the broker regulations.
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Provisions expressly mentioned in the judgment/order text.
Margin requirements revised: sale-side margins withdrawn, price band removed and upfront margin collection threshold clarified.
The circular withdraws the temporary sale-side margin requirement on financial institutions, FIIs, banks and mutual funds that was based on a minimum VaR differential, and withdraws the temporary 10% price band on selected derivative-underlying stocks. The 10% upfront margin requirement for clients (excluding FIs, FIIs, MFs) is narrowed so brokers collect it only where the resulting margin reaches the specified collection threshold; certification of collection will be carried out by the compliance officer under the broker regulations.
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