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NSE tightens trading margins for derivatives segment under new framework

Under the new framework, derivatives market participants will have to provide margins 300% higher than the normal applicable amount, if the MWPL for a security is high

BS Reporter  |  Mumbai 

Mumbai: New logo of National Stock Exchange (NSE) displayed outside the headquarter, in Mumbai on Thursday, August 16, 2018. Photo: PTI

The (NSE) on Wednesday increased trading margins for the segment.

“In a joint meeting of exchanges and the Securities and Exchange Board of India, it has been decided that the should be altered at different levels of MWPL,” the said in a circular.

MWPL refers to ‘market wide position limit’.

Under the new framework, market participants will have to provide margins 300 per cent higher than the normal applicable amount, if the MWPL for a security is high.

First Published: Thu, April 25 2019. 01:09 IST
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