The Bombay Stock Exchange (BSE) on June 14, 2023, issued a circular regarding the Guidelines/clarifications on Margin collection & reporting.
This has a reference to the Exchange notice no. 20230426-68 dated April 26, 2023, on Guidelines/clarifications on Margin collection & reporting
The following has been clarified namely: -
• It states that 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. Further, in respect of the sale of shares by a client for which an early pay-in (EPI) request via the 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
• it is reiterated that the margin may be considered as collected towards the peak margin of the sale transactions and the EPI value may be considered as margin collected towards subsequent margin requirement of the client only upon early pay-in (EPI) request via Block mechanism has been accepted by the depositories and credit entry is posted of the sale value of the shares in the ledger account of the client.
• It further states that the Members are advised to take note of the above and ensure strict compliance.
[Notice No. 20230614-75]
