The Securities and Exchange Board of India on 20th July 2020 has issued a framework to enable verification of upfront collection of margins from clients in cash and derivatives segments. The Framework shall be in force from 1st December 2020.
SEBI has reiterated that the applicable upfront margins shall be collected from the clients in advance of the trade.
Clearing corporations shall send minimum four snapshots of client-wise margin requirement to TMs/CMs (trading members/clearing members) for them to know the intraday margin requirement per client in each segment. It is further stated that the number of times snapshots need to be sent in a day may be decided by the respective clearing corporation depending on market timings, subject to a minimum of four snapshots in a day.
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