Relaxations to the Collection and Reporting of Margins by Trading Member (TM)/Clearing Member (CM) in Cash Segment

The Securities Exchange Board of India vide circular dated July 31, 2020 has given relaxations to the Collection and Reporting of Margins by Trading Member (TM)/Clearing Member (CM) in Cash Segment in context of pandemic outbreak and subsequent lockdown. The following are the relaxations extended.

• If TM / CM collects minimum 20% upfront margin in lieu of VaR and ELM from the client, then penalty for short-collection / non-collection of margin shall not be applicable. However, it is reiterated that Clearing Corporation shall continue to collect the upfront margin from the TM / CM based on VaR and ELM.
• The penalty provision for short-collection / non-collection of upfront margin in cash segment shall be implemented with effect from September 01, 2020.