Cross Margining across Exchange traded Equity (Cash) and Exchange traded Equity Derivatives (Derivatives) segments

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....of NSE and BSE and their Clearing Houses / Corporations. Dear Sir, Sub: Cross Margining across Exchange traded Equity (Cash) and Exchange traded Equity Derivatives (Derivatives) segments  This is in continuation of SEBI Circular No. MRD/DoP/SE/Cir-13/2008 dated May 05, 2008 on the cross margining facility across cash and derivatives segments for institutional trades. In order to impr....

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....t iii.  Stock futures position in derivatives segment and the position in the corresponding underlying in cash segment b.  A basket of positions in index constituent stock/stock futures, which is a complete replica of the index in the ratio specified by the Exchange/Clearing Corporation, shall be eligible for cross margining benefit. c.  The positions in t....

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.... avail the facility of cross margining, a client may maintain two accounts with the trading member / clearing member, namely arbitrage account and a non-arbitrage account, to allow converting partially replicated portfolio into a fully replicated portfolio by taking opposite positions in two accounts. However, for the purpose of compliance and reporting requirements, the positions across both acco....

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....n to: a.  Hold the positions in the cross margin account till expiry in its own name. b.  Liquidate the positions / collateral in either segment and use the proceeds to meet the default obligation in the other segment. 6.  Agreement The Exchange / Clearing Corporation shall enter into agreement with client / clearing member / trading member / custodian, as th....