Collection and reporting of margins by Trading Member (TM) /Clearing Member (CM) in Cash Segment

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....orporations Dear Sir / Madam, Subject: Collection and reporting of margins by Trading Member (TM) /Clearing Member (CM) in Cash Segment 1. Attention is drawn to SEBI circular no. MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 on 'Comprehensive Risk Management Framework for the Cash Market'. 2. SEBI has also put in place a 'Mechanism for regular monitoring of and penalty for shortcollec....

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....aring member by adjusting against the available liquid assets of TM/CM at the time of trade. However, the quantum, form and mode of collection of the margin from the client is left to the discretion of TM/CM. In order to align and streamline the risk management framework of both cash and derivatives segments, with respect to collection of margins from the clients and reporting of short-collection/....

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.... margin calls are made by the Stock Exchanges/TMs/CMs. The period of T+2 days has been allowed to TMs/CMs to collect margin from clients taking into account the practical difficulties often faced by them only for the purpose of levy of penalty and it should not be construed that clients have been allowed 2 days to pay margin due from them.) 4.1.3. As prescribed in clause 7 of SEBI circular MRD/....

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....argins, the Stock Exchanges shall take the disciplinary action as per the framework specified in SEBI Circular CIR/DNPD/7/2011 dated August 10, 2011. 4.2.2. For false/incorrect reporting of margin collection from the clients by TMs/CMs, the Stock Exchanges shall take disciplinary action as per the framework specified in SEBI circular CIR/HO/MIRSD/DOP/CIR/P/2019/88 dated August 01, 2019. 5. T....