Follow Us :

SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021.

SMDRP/Policy/Cir- 22/2001

March 20, 2001

The President/Executive Director/Managing Director Of all the Stock Exchanges

Sir/Madam,

Sub:-System based calculation of margins on gross basis.

Vide our earlier circular dated February 01, 2001, we had stipulated that the stock exchanges would modify their system software so that entry of client code becomes mandatory at the brokers’ level and that orders would not be accepted without the client code. It was also mentioned that with effect from February 28, 2001, the stock exchanges would calculate the MCFS/ALBM margins based on the data available from the systems rather on self-certification basis. Some of the Exchanges have represented in the meeting of the Group on Risk Management Systems for the Equity Markets held on March 07, 2001 that they are in the final stages of testing the system software for the system based calculation of margins.

It was decided to give some more time to enable the stock exchange to test the system software. As decided at the meeting, the stock exchanges shall comply with the requirement of introducing gross margining on the basis of data available from the system (and not on self certification basis) by March 31, 2001 under advice to us. Any exchange failing to comply with this directive shall discontinue undertaking the facilities of MCFS/ALBM/BLESS.

Yours faithfully

P K Bindlish
Deputy General Manager
Secondary Market Depository,
Research & Publications Department

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930