TMI BlogComposition of Capital and MarginsX X X X Extracts X X X X X X X X Extracts X X X X ..... d as 30%. The issue of composition of additional capital and margins has been discussed by the Advisory Committee on Derivatives and Market Risk Management and based on the deliberations of the Committee, it has been decided that the revised composition of additional capital and margins and the eligibility criteria for securities shall be as follows:- Cash and non-cash component of additional capital and margins The minimum cash component of the additional capital and margins shall be increased from the existing level of 30% to 50 %. The cash component of additional capital and margins shall be increased to 50% in a manner so that this is complied with by the member brokers of the exchange by the end of June ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioned above would include guarantees provided by the bank for itself or for others as well as debt or equity securities of the bank which have been deposited by members for additional capital or margins. Eligible Securities and its Valuation While Section 1 specifies the cash and non-cash component of additional capital and margin and clause 1.5 in particular specifies the securities including the units of certain types of mutual fund schemes which could be considered as cash equivalent, this section specifies the type of securities, including equity shares, units of mutual funds which could be considered as eligible securities and hair cut for the purpose of non-cash component of base minimum capital, additional capita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n authorised to direct the stock exchanges to make necessary amendments to the bye-laws, rules and regulations for the implementation of the above decision immediately. bring the provisions of this circular to the notice of the member brokers/clearing members of the Exchange and also to disseminate the same on the website for easy access to the investors; and communicate to SEBI, the status of the implementation of the provisions of this circular in Section II, item no. 13 of the Monthly Development Report for the month of June 2003. This circular is being issued in exercise of powers conferred by section 11 (1) of the Securities and Exchange Board of India Act, 1992, read with section 10 of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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