Title

MARGIN COLLECTION AND REPORTING FREQUENTLY ASKED QUESTIONS (FAQs) 1) Whether elateion of margin from clients is need in the Capital Market Segment? In grapheme of the Capital Market share members should have a responsible system of danger management to protect themselves from client default. Margins atomic number 18 likely to be an important element of such a system. The risk management system should be well authenticated and be made accessible to the clients and the Exchange / NSCCL. However, the quantum of margins and the form and stylus of put inion of margins is left to the discretion of members. 2) Whether collection of margin from clients is essential in the F&O segment and specie Derivatives segment? In the F&O segment, it is mandatory for members to collect initial margins from respective(prenominal) clients / constituents on an upfront tush. Similarly in the Currency Derivatives segment also, it is mandatory for members to collect initial margins and extreme prejudice margins from their client / constituents on an upfront basis. 3) When should a member collect margins from clients? Members are required to collect margin from respective constituents on an upfront basis.

It is to be ensured that the adequate margin amount from respective constituent (client / trading member) is available with the member, on the day the relevant trades are done. It is mandatory for all trading / clearing members to brood details of such margins collected on an upfront basis to the Clearing Corporation. 4) In what form should a member collect margin from its constituents? Members may collect margins from its respective client in both of the following forms only, after taking into account their risk management systems and liquidity aspects. ? Funds ? Bank guarantee issued by some(prenominal) approved bank ? Fixed deposit receipts (FDRs) issued by any approved bank ? Liquid securities in dematerialized form, actively traded on the issue Exchanges, which are specifically... If you want to get a full essay, parliamentary law it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!