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Sebi defers implementation of new higher margin norms for derivatives

Sebi said besides collecting initial margin, trading members will have to collect exposure margin

BS Reporter  |  Mumbai 

SEBI
Photo: Reuters

Capital market regulator (Sebi) has deferred the implementation of norms requiring brokers to collect higher upfront exposure from clients. The new norms were to come into effect from June 1. Instead, they will now come into effect from July 1, the (NSCCL), an arm of the (NSE), has said in a circular.

The additional risk management measures were announced to curb speculative trading in the derivatives segment. The measures were announced by way of a circular on May 2. Under the new norms, said besides collecting initial margin, trading members will have to collect exposure margin, extreme loss margin and calendar spread margin.

were required to be mark-to-marketed and compulsorily collected and reported to exchange. Brokers, however, were opposed to the norms as they feared volumes could reduce by as much as 20 per cent. Sources say brokers are lobbying with to water down some of the norms.

First Published: Thu, May 31 2018. 21:02 IST
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