Business Standard

NSE brokers directed to implement risk-reduction mode

The move, effective from Dec 24, will be applicable for capital market, future & options segment

Related News

Leading bourse the (NSE) today said trading members are required to compulsorily implement a when 90% of their capital is utilised towards margins, following market regulator Sebi's directive.

The move would be applicable for capital market and future & options segment. It would be effective from December 24, 2012, said in a statement.

The stock broker would be moved back to the normal risk management mode as and when the collateral of the stock broker was lower than 85% utilisation level, NSE said.

Sebi last week asked bourses to ensure that the stock brokers mandatorily put in place "risk-reduction mode".

Under this mode, all unexecuted trades would be cancelled when 90% of the stock broker's collateral available for adjustment against margins gets utilised.

Sebi came out with stringent norms for bourses after a set of erroneous orders placed by brokerage Emkay Global on October 5 led to the Nifty crashing over 15% within a few minutes of opening.

Read more on:   
|
|

Read More

Two entities fail to make prima facie case to revoke ban: Sebi

The Securities and Exchange Board of India (Sebi) today said the restraining order on two entities, related to plunge in some mid-cap stocks in July, ...

Quick Links

 

Market News

Oil resumes slide in Asian trade

Investors wait for more signs of economic growth in Europe

Markets closed on account of Diwali Balipratipada

Indian equity, forex, money and commodity markets are shut today on account of Diwali Balipratipada.

Adani stocks led the way in Samvat 2070

Ambani brothers, JSPL the bottom three in market-cap growth

Raising the output key to Cairn India's prospects

With crude oil prices benign, increasing oil and gas production is crucial to drive growth

Biocon sees muted quarter, lacks immediate triggers

Reduced exports to West Asia & North Africa, capacity constraints affect sales

Back to Top