Introduction of Cross-Margining facility in respect of offsetting positions in co-related equity Indices

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....-related equity Indices SEBI vide its circular SEBI/DNPD/Cir-44/2008 dated December 02, 2008 allowed cross margining across cash and exchange traded equity derivatives segments. 2. In order to facilitate efficient use of collateral by market participants, it has been decided to extend cross margining facility to off-setting positions in highly co-related equity indices. 3. Eligibility Criter....

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....ces c. If the equity indices pairs fail to fulfil any of the abovementioned eligibility criteria, cross margining benefit shall not be given after the upcoming monthly expiry. 4. Computation of cross margin a. To begin with, a spread margin of 30% of the total applicable margin on the eligible off-setting positions, shall be levied. b. Cross margining benefit shall be computed at client....

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.... necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision. c. specify the legal agreements between the clearing entities for the purpose of margin utilisation in case of liquidation/default, etc. d. bring the provisions of this circular to the notice of the trading members / clearing members / custodians and also to disseminate the sam....