The Multi Commodity Exchange Clearing Corporation Limited (MCXCCL) on December 17, 2024, issued a circular regarding an amendment in the Margin Shortfall Block Amount (MSBA) Methodology.
The following has been stated: -
•MCXCCL has updated its Margin Shortfall Block Amount (MSBA) provisions. If a Clearing Member exceeds their margin limit by INR 5 lakhs or more on two or more occasions in 30 days, a cumulative MSBA will be blocked.
•The blocked amount won't be available for margin benefits, and members must provide it within 2 settlement days.
•If the collateral is insufficient, the member will be suspended until compliance, and MSBA will be retained for 30 days.
[MCXCCL Circular No. MCXCCL/RISK/316/2024]
