Margin collection requirements mandate upfront VaR and ELM from clients, with reporting obligations and disciplinary penalties for short-collection. Trading Members and Clearing Members in the cash segment must collect VaR margins and Extreme Loss Margin (ELM) upfront from clients; other margins must be collected promptly within a short prescribed window. Institutional investor exemptions and an exception where adequate initial margins already cover potential losses are preserved. TMs/CMs must report actual short-collection or non-collection of client margins to the stock exchange within the prescribed reporting timeframe, and stock exchanges must apply disciplinary frameworks for short-collection and for false or incorrect reporting.
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Provisions expressly mentioned in the judgment/order text.
Margin collection requirements mandate upfront VaR and ELM from clients, with reporting obligations and disciplinary penalties for short-collection.
Trading Members and Clearing Members in the cash segment must collect VaR margins and Extreme Loss Margin (ELM) upfront from clients; other margins must be collected promptly within a short prescribed window. Institutional investor exemptions and an exception where adequate initial margins already cover potential losses are preserved. TMs/CMs must report actual short-collection or non-collection of client margins to the stock exchange within the prescribed reporting timeframe, and stock exchanges must apply disciplinary frameworks for short-collection and for false or incorrect reporting.
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