SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, A Wing, Gr. Floor,
224, Nariman Point, Mumbai 400 021
November 06, 2000
The President/Executive Director/Managing Director Of All Stock Exchanges
Pursuant to the discussions and decisions taken in the meeting of the Group on Risk Management in Equity Markets held on September 19, 2000, exchanges are advised that:
The exchanges may collect a uniform margin of 12.5% on the carry forward position in the Modified Carry Forward System (MCFS) and on the trade positions in the Automated Lending and Borrowing Mechanism (ALBM) instead of the stratified margin slabs, as is the practice now.
As Carry Forward under Rolling Settlement (CFRS), Automated Lending and Borrowing Mechanism under Rolling Settlement (ALBRS) and Continuous Net Settlement (CNS) are new products, the Exchanges would undertake educational and awareness programs for the investors to familiarise them with the features of these products.