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TMI BlogCollection and reporting of margins by Trading Member (TM) /Clearing Member (CM) in Cash SegmentX X X X Extracts X X X X X X X X Extracts X X X X ..... and reporting of margins by Trading Member (TM) /Clearing Member (CM) in Cash Segment 1. Attention is drawn to SEBI circular no. MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 on 'Comprehensive Risk Management Framework for the Cash Market'. 2. SEBI has also put in place a 'Mechanism for regular monitoring of and penalty for shortcollection/ non-collection of margins from clients' in Derivative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M at the time of trade. However, the quantum, form and mode of collection of the margin from the client is left to the discretion of TM/CM. In order to align and streamline the risk management framework of both cash and derivatives segments, with respect to collection of margins from the clients and reporting of short-collection/non-collection of margins, following guidelines are issued: 4.1. Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ys has been allowed to TMs/CMs to collect margin from clients taking into account the practical difficulties often faced by them only for the purpose of levy of penalty and it should not be construed that clients have been allowed 2 days to pay margin due from them.) 4.1.3. As prescribed in clause 7 of SEBI circular MRD/DoP/SE/Cir-07/2005 dated February 23, 2005, the TM/CM shall be exempted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pecified in SEBI Circular CIR/DNPD/7/2011 dated August 10, 2011. 4.2.2. For false/incorrect reporting of margin collection from the clients by TMs/CMs, the Stock Exchanges shall take disciplinary action as per the framework specified in SEBI circular CIR/HO/MIRSD/DOP/CIR/P/2019/88 dated August 01, 2019. 5. The provisions of paragraph 4.1 of this circular shall come into force with effect from Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dia Act, 1992 and Section 10 of Securities Contract (Regulation) Act, 1956 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 8. This circular is available on SEBI website at www.sebi.gov.in under the categories "Legal Framework". Yours faithfully, Rajesh Kumar D General Manager Market Intermediaries Regulation and Sup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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