Latest News | Sebi Changes Framework to Enable Verification of Upfront Collection of Margins from Clients in Derivatives Segment
Get latest articles and stories on Latest News at LatestLY. Capital markets regulator Sebi on Wednesday tweaked the framework pertaining to the collection of End of Day (EOD) margin requirement from clients in derivatives segments.
New Delhi, Feb 1 (PTI) Capital markets regulator Sebi on Wednesday tweaked the framework pertaining to the collection of End of Day (EOD) margin requirement from clients in derivatives segments.
In a circular, Sebi has said that EOD margin collection requirement from clients, in derivatives segments, including commodity derivatives, would also be calculated based on the fixed Beginning of Day (BOD) margin parameters of the client.
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The regulator clarified that the change is only for the purpose of verification of upfront collection of margins from clients.
The margin parameters applicable for collection of margin obligation by Clearing Corporations would continue to be updated on intra-day and EOD basis, as per the extant provisions.
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The new framework would come into effect from three months from the date of issuance of this circular.
In May 2022, Sebi had modified the framework specifying the margin requirements to be considered for the intra-day snapshots, in derivatives segments (including commodity derivatives), would be calculated based on the fixed BOD margin parameters. It was also specified therein that there would be no change in methodology of determination and collection of EOD margin obligation of the client.
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