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Exchanges put the onus on clearing members to report peak margins

Shortages in reporting shall be considered as shortfall of margin collection and a penalty will be levied on the clearing member of the custodian participant

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Custodians, which often are the same entities that play the role of clearing members, had raised concerns about this with the market regulator a few days ago.

Ashley Coutinho Mumbai

3 min read Last Updated : Nov 27 2020 | 10:38 PM IST

Exchanges have placed the onus on clearing members to report peak margins and penalty for short reporting in the derivatives segment, even in cases where trades are rejected owing to mismatch or error.

The NSE, in a circular on Thursday, said clearing members are required to report end-of-day and peak margins, according to the file downloaded by the clearing corporation.

In case of any shortcomings in reporting, the same will be considered as shortfall in margin collection, and a penalty will be levied and collected from the clearing member of the custodian participant.

Unlike retail investors who trade and clear the trade through

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