Spread margin benefit in commodity futures contracts

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....contracts 1. Vide circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015, SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated September 01, 2016 and SEBI/HO/CDMRD/DRMP/CIR/P/2016/130 dated December 02, 2016, SEBI has prescribed norms inter-alia for providing margin benefit on spread positions in commodity futures contracts. 2. Based upon proposals from Exchanges and recommendations of the Risk Managemen....

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.... on spread positions is restricted to 50%. No benefit in ELM shall be provided for spread positions, i.e. ELM shall be charged on both individual legs. Exchanges are free to charge higher margins depending upon their risk perception. Margin benefit on spread positions shall be entirely withdrawn latest by the start of tender period or the start of the expiry day, whichever is earlier. 2.3. To b....