The Bombay Stock Exchange (BSE) on May 11, 2023, issued a notification regarding the Daily reporting of Short-collection/Non-collection of client margins.
The following has been stated namely: -
• Members are required to collect margins (initial, exposure, net buy premium, minimum, additional margin, etc.), and mark-to-market losses from their clients/constituents.
• It is mandatory for all clearing /trading members to report the details of the actual amount collected to the Clearing Corporation per the existing procedures and formats specified by ICCL.
• However, it is observed that some of the members report the matched margins in case of excess margin collected from clients, and report accurate shortfall only in case of shortage of margins. However, such reporting of margins by the members does not reflect the true picture of the margins of clients with the members.
• The members are directed to report the correct value of the margins and mark-to-market losses etc. collected from the clients even if the amount collected is more than the requirement.
[Notification No. 20230511-14]
