The National Stock Exchange (NSE) on November 29, 2024, issued a circular regarding the Upfront collection of Option Premium.
The following has been stated: -
•The SEBI circular (ref. no: SEBI/HO/MRD/TPD-1/P/CIR/2024/132) mandates upfront collection of option premiums from options buyers to enhance investor protection and market stability.
•It requires including the net options premium in intraday margin snapshots and end-of-day margin reports. Trading and clearing members must incorporate these premiums in margin calculations, with updated reports in UDiFF format.
•The changes will take effect from February 01, 2025.
The detailed circular is given in the document below.
[Circular Ref. No: 147/2024]
