SEBI Updates Margin Trading Rules: Cash Collateral Securities for Maintenance Margin, New MTF Reporting Deadline.

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....This circular amends the requirement under Chapter 1 at Para 4.3.3.1 of the SEBI Master Circular (Stock Exchanges and Clearing Corporations) dated October 16, 2023, allowing securities funded through cash collateral to be considered as maintenance margin for Margin Trading Facility (MTF). It permits the use of stocks or units of Equity ETFs received from the Clearing Corporation against cash collateral provided by the client, and pledged in favor of the trading member, as funded stock for computing maintenance margin. A new Clause 4.3.3.5 is introduced, specifying that if funded stock is considered towards maintenance margin, it must be Group 1 securities with applicable margin as VaR + 5 times the Extreme Loss Margin. The reporting deadline for exposure under MTF is extended to 6:00 PM on T+1 day. Stock Exchanges are advised to amend relevant bye-laws and disseminate the circular.....