Equity ETF eligibility for Margin Trading Facility expands collateral, margin and funding rules under regulatory amendment Units of Equity Exchange Traded Funds classified as Group I securities are permitted as eligible securities and as collateral under the Margin Trading Facility. Initial margin formulas are specified with higher multipliers for non F&O Group I stocks and Equity ETFs; margins may be posted as cash, cash equivalents, Group I equity shares or Group I Equity ETF units subject to SEBI haircuts. Brokers must segregate collateral and funded positions, adopt board approved diversification policies, follow prescribed disclosure formats for daily reporting, and use only specified funding sources for MTF.
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Provisions expressly mentioned in the judgment/order text.
Equity ETF eligibility for Margin Trading Facility expands collateral, margin and funding rules under regulatory amendment
Units of Equity Exchange Traded Funds classified as Group I securities are permitted as eligible securities and as collateral under the Margin Trading Facility. Initial margin formulas are specified with higher multipliers for non F&O Group I stocks and Equity ETFs; margins may be posted as cash, cash equivalents, Group I equity shares or Group I Equity ETF units subject to SEBI haircuts. Brokers must segregate collateral and funded positions, adopt board approved diversification policies, follow prescribed disclosure formats for daily reporting, and use only specified funding sources for MTF.
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