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Peak Margin

Checkout Important Notices & Announcement Here !

Sub: Introduction of Peak Margin

With reference to SEBI circular reference number SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated 20th July 2020, Peak Margin would be introduced in Equity, Commodity & Currency segment from 1st December 2020.

Following are the guidelines for collection of upfront margin from clients in Cash & Derivative segment: –

1. SEBI circular Exchanges/ Clearing Corporations have mandated trading members to collect applicable margins from their clients/ constituents in advance of the trade for all the segments i.e. Equity, Commodity &Currency.

2. MOFSL shall have to report the margin collected from each client for EOD as well as Peak margin 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 Trading Member (TM)/Clearing Member (CM) at EOD. AND b) Peak margin obligation (Highest) of the client, during the day, shall be compared with respective client peak margin available with the TM/CM during the day. Higher of the shortfall in collection of the margin obligations at (a) and (b) above, shall be considered for levying of penalty as per the extant framework

3. The above framework will be prescribed in the phased manner as below

• Phase 1 (for 3 months from the date of implementation) – 25% of (Peak margin obligation of the client) shall be compared with respective client peak margin available with the TM/CM during the day.

• Phase 2 (for subsequent 3 months) – 50% of (Peak margin obligation of the client) shall be compared with respective client peak margin available with the TM/CM during the day.

• Phase 3 (for subsequent 3 months) – 75% of (Peak margin obligation of the client) shall be compared with respective client peak margin available with the TM/CM during the day.

• Phase 4 (subsequently) – 100% of (Peak margin obligation of the client) shall be compared with respective client peak margin available with the TM/CM during the day.

4. In cash market the peak margin will be applicable till T+2 till payin for the delivery positions.

5. Peak margin file will be sent by exchanges 4 times in a day at random time schedule, the maximum margin in any of the these files will be considered as peak margin for the day and margin will have to be complied based on the peak margin or EOD margin which is higher.

6. Please find below example of how Peak margin would be calculated:-

Case 1PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash100002000030000200000
EQ Derivative0000
Currency Derivative0000
Commodity Derivative0000
Peak Reportable Margin300000
Reportable Margin as per 1st Phase75000
Available Balance50000 
Shortage0 
Case 2PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash10000200003000002000040000
EQ Derivative0000
Currency Derivative0000
Commodity Derivative0000
Peak Reportable Margin300000 
Reportable Margin as per 1st Phase75000 
Available Balance50000 
Shortage-25000 
Case 3PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash1000020000200001000090000
EQ Derivative50000500008000070000
Currency Derivative50003000007000
Commodity Derivative0000
Peak Reportable Margin100000 
Reportable Margin as per 1st Phase25000 
Available Balance50000 
Shortage-40000 
Case 4PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash1000020000500001000056000
EQ Derivative10000500004000070000
Currency Derivative50000800020005000
Commodity Derivative100000000
Peak Reportable Margin170000 
Reportable Margin as per 1st Phase42500 
Available Balance50000 
Shortage-6000 
Case 5PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash100004000050000200000
EQ Derivative50000000
Currency Derivative0000
Commodity Derivative0000
Peak Reportable Margin600000
Reportable Margin as per 1st Phase150000
Available Balance50000 
Shortage0 
Case 6PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash100002000020000070000900000
EQ Derivative50000500008000010000
Currency Derivative0000
Commodity Derivative0000
Peak Reportable Margin280000 
Reportable Margin as per 1st Phase70000 
Available Balance50000 
Shortage-40000 
Case 7PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash1000020000500001000040000
EQ Derivative1000050000400070000
Currency Derivative50000800005000
Commodity Derivative0000
Peak Reportable Margin85000 
Reportable Margin as per 1st Phase21250 
Available Balance50000 
Shortage0 
Case 8PEAK MarginEOD Margin
Peak-1Peak-2Peak-3Peak-4
Cash100002000050000100000
EQ Derivative1000050000400070000
Currency Derivative500008000020005000
Commodity Derivative100000000
Peak Reportable Margin170000 
Reportable Margin as per 1st Phase42500 
Available Balance50000 
Shortage0 

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