SMD Circular No12 dated May 17, 2002

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....he meeting of the Group on Risk Management Systems for the Equity Markets held on April 2002, the following decisions have been taken:- 1.    Currently, in terms of press releases dated March 05, 2001 and circular no. SMDRP/Policy/Cir-34/2001, the financial institutions, FIIs, banks, and mutual funds were required to pay margins on their sale position in scrips where there is a p....

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.... excessive market volatility. The Group in its meeting decided that since this was a temporary measure, the price band of 10% as imposed earlier be withdrawn. 3.     Vide circular no SMDRP/POLICY/CIR-33/2000 dated July 27, 2000, it was directed that all the clients, excluding FIs, FIIs, MFs shall maintain a deposit with the broker in the form of cash, bank guarantees, FDRs o....