The National Stock Exchange (NSE) on July 05, 2024, issued a circular regarding the Short Allocation of Collaterals.
The following has been stated: -
•Client collateral value in the segment for the purpose of short allocation shall be collateral value allocated by the CM to the client in the segment + value of securities repledged at Clearing Corporation for that client in the segment (value shall be before applying prudential norms of Clearing Corporation including 50:50 requirement).
•The value of collateral above the prudential norms shall be updated under the field “Excess Collateral of another segment” in the SA04/SA05/SA06 report. It is clarified that the value of securities (before applying prudential norms) shall be only for monitoring of short allocation and not for monitoring of actual margin requirement by the Clearing Corporation.
•Further, the intra-day/end-of-day short allocation report (SA01/SA02/SA03) shall include data for all clients who have margins or collateral.
•The changes shall be applicable from the trade date July 08, 2024.
•This circular applies to the Futures and Options; Capital Market Segment; Currency Derivatives Segment; and Commodity Derivatives segment.
[Circular Ref. No: 0122/2024]
