BSE Says No New Margins Proposed on Derivatives Exposure from 1st January
Moneylife Digital Team 20 December 2023
Margins applicable in the derivatives segment are uniform across clearing corporations as per the framework of the Securities and Exchange Board of India (SEBI) and there are no additional margins proposed from 1 January 2024, BSE says.
Clarifying on media reports, BSE says, "The Indian Clearing Corporation Ltd (ICCL) notice on 19 December 2023, is in relation to BSE's earlier notice on 18 March 2019, specifying additional margins for stock futures linked to market-wide position limit (MWPL)."
Reuters, in a report says that BSE's subsidiary ICCL will impose an additional 15% margin on securities under MWPL. "The move comes as Indian benchmarks have hit fresh record highs this month, with increased retail participation in the derivatives segment," the report says. 
ICCL, in the notice, has said that it will levy an additional exposure margin at 15% in the equity derivatives segment on securities in which the top-10 clients account for more than 20% of MWPL. "However, for securities where additional surveillance margin is applicable, the higher of additional exposure margin as stated above or additional surveillance margin shall be levied. Scrips shall be identified under this framework based on three months of rolling data and shall be reviewed on a monthly basis."
"This additional exposure margin for the securities will be effective from 1 January 2024, immediately after the expiry of December 2023 contracts," ICCL has said.
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