The National Stock Exchange (NSE) on October 01, 2024, notified regarding the Guidelines on Margin collection & reporting.
SEBI has decided that penalties for short or non-collection of upfront margins by clearing corporations can be passed on to clients under certain conditions, such as dishonoured cheques or changes in hedge positions. For hedge-related penalties, members must inform clients in advance via their Risk Management Policy.
These provisions apply from November 1, 2024, with members required to notify clients 7 days prior. Supporting documents and an audit trail must be maintained when paying clients penalties.
[Notification No. NSE/INSP/64315]
