The Bombay Stock Exchange (BSE) on January 21, 2025, issued a notification regarding the upfront collection of Premium on Equity Derivatives Options Contracts.
The following has been stated: -
•The SEBI circular introduces changes to the equity index derivatives framework, effective from February 10, 2025, requiring upfront margin collection for option buyers to include the net options premium payable.
•Intraday margin snapshots will capture this alongside SPAN and ELM for margin computation. Peak margin obligations will consider SPAN, ELM, and net options premium payable from intraday snapshots.
•The UDiFF file format will be updated to include the net options premium payable in margin reports.
•These changes apply to client margin reporting and short allocation monitoring, with no changes to real-time margin monitoring or file formats for other reports.
The detailed notification is given in the document below.
[Notification No. 20250121-9]
