The National Stock Exchange (NSE) vide circular dated September 02, 2022, has issued Guidelines/Clarifications on Margin collection & reporting. The Exchange circular dated July 31, 2020, clarified that the members couldn’t charge the client for a short-collected advance margin. However, the Exchange has noted that some members are passing on to their individual clients the fine imposed by clearing firms due to “short/non-collection of upfront margins from clients.”
NSE has therefore further clarified that members are not permitted to transfer to customers the fine assessed by clearing corporations for “short/non-collection of upfront margins.”
