Composition of Capital and Margins

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.... capital and margins has been discussed by the Advisory Committee on Derivatives and Market Risk Management and based on the deliberations of the Committee, it has been decided that the revised composition of additional capital and margins and the eligibility criteria for securities shall be as follows:- Cash and non-cash component of additional capital and margins The minimum cash component of the additional capital and margins shall be increased from the existing level of 30% to 50 %. The cash component of additional capital and margins shall be increased to 50% in a manner so that this is complied with by the member brokers of the exchange by the end of June 2003. The mark to market margin shall continue to be collected by th....

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.... which have been deposited by members for additional capital or margins. Eligible Securities and its Valuation While Section 1 specifies the cash and non-cash component of additional capital and margin and clause 1.5 in particular specifies the securities including the units of certain types of mutual fund schemes which could be considered as cash equivalent, this section specifies the type of securities, including equity shares, units of mutual funds which could be considered as eligible securities and hair cut for the purpose of non-cash component of base minimum capital, additional capital and margin. Additional Capital Equity shares classified in Group I at the stock exchange in accordance with the parameters of volatility a....