The National Stock Exchange (NSE) on April 26, 2023, issued a notification regarding the Guidelines/ clarifications on Margin collection & reporting
This has reference to Exchange Circulars NSE/INSP/45191 dated July 31, 2020, and NSE/INSP/46485 dated November 27, 2020, with respect to Guidelines/clarifications on Peak Margin collection and reporting.
The following has been stated namely: -
• It states that the members are requested to note that Question no. 1 and clarification with respect to the same mentioned in Annexure A of the aforesaid circular dated November 27, 2020, has been partially modified as namely: -
1. Whether early pay-in (EPI) of securities accepted by the depository during the day can be considered as upfront/peak margin for the said sale transaction?
o Yes, in respect of the sale of shares by a client for which an early pay-in (EPI) request via Block mechanism has been accepted by depositories, the same may be considered as margin collected towards peak margin for the said sale transaction.
o Further, Clarifications with respect to EPI, as mentioned in the 1st bullet point of question no. 03 in Annexure A of the Exchange circular NSE/INSP/45191 dated July 31, 2020, has been partially modified as under:
o In respect of the sale of shares by a client for which an early pay-in (EPI) request via Block mechanism has been accepted by depositories and credit entry is posted of the sale value of the shares in the ledger account of the client, the EPI value may be considered as margin collected towards subsequent margin requirement of the client. However, the sale value of such securities (EPI value), as reduced by the value of the 20% upfront Margin, shall be available as Margin for other positions across all the segments.
o The illustration has been attached
• The Members are requested to take note of the contents of the circular and comply.
[Circular No.NSE/INSP/56512]
