TMI BlogFramework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... ins from their clients/ constituents on an upfront basis. Similarly, SEBI Circulars CIR/CDMRD/DRMP/01/2015 dated October 01, 2015 and SEBI/HO/CDMRD/DRMP/CIR/P/2016/80 dated September 07, 2016 directed to National Commodity Derivatives Exchanges, inter alia, require members to collect Initial Margin and ELM upfront from their clients as applicable at the time of the trade. 2 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, SEBI, vide Circular no. CIR/HO/MIRSD/DOP/CIR/P/2019/139 dated November 19, 2019 , inter alia, required the Trading Members (TMs) / Clearing Members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the Circular SEBI/HO/CDMRD/DRMP/CIR/P/2019/149 dated November 29, 2019 shall, accordingly, be amended to the extent mentioned above. All other provisions/ conditions specified in the Circular dated November 29, 2019 shall remain unchanged. 7 The provisions of this Circular shall come into effect from December 01, 2020. 8 Stock Exchanges and Clearing Corporations are directed to: a) take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations; b) bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and c) communicate to SEBI, the status of implementation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... io for margin collection from clients. Therefore for the commodity derivatives segment, last snapshot for commodity derivatives shall be generated at 5 PM and EOD margin also shall be determined in accordance with the Circular. (ii) The client wise margin file (MG-12/13) provided by the CCs to TMs/CMs shall contain the EOD margin requirements of the client as well as the peak margin requirement of the client, across each of the intra-day snapshots. (iii) The member shall have to report the margin collected from each client, as at EOD and peak margin collected during the day, in the following manner: a) EOD margin obligation of the client shall be compared with the respective client margin available with the TM/CM at EOD. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith respective client peak margin available with the TM/CM during the day. Shortfall in collection of margins, as detailed in Para (iii) above, shall be calculated by taking into consideration the aforesaid phased adoption of peak margin obligation of client. Further, during the aforesaid period of phased adoption, the member should be able to demonstrate that the balance peak margin obligation (i.e., [peak margin obligation of the client across the snapshots] minus [25%/ 50%/ 75% 1 of Peak margin obligation of the client across the snapshots]) has been funded from the member s own funds and not from any other client. 1 Depending on the phase - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Mana ..... X X X X Extracts X X X X X X X X Extracts X X X X
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