The National Stock Exchange (NSE) on February 11, 2025, issued the notification regarding the Pre-expiry margins.
The following has been stated namely: -
• This is in partial modification to Point no 7.12, Item 7 “Margins”, Part B of NCL consolidated circular (Attached with the document)
o In the case of options on futures, a sensitivity report shall be provided to the members on the impending increase in margins on E-4, E-3, and E-2, prior to expiry (E) of options on future contracts due to assumed devolvement of in-the-money (ITM) options.
o Further, pre-expiry margins shall be levied in a staggered manner till the expiry of the options on futures contracts as follows: -
a. E-1 day: 25% of pre-expiry margins computed on assumed devolvement of positions in ITM option contracts as at end-of-day of E-2.
b. E day: 50% of pre-expiry margins computed on assumed devolvement of positions in ITM option contracts as at end-of-day of E-1. 3. Pre-expiry margins shall not be considered for the purpose of client margin reporting.
The provisions of the above circular shall come into effect from February 11, 2025
This shall be applicable to Commodity Derivatives Segment
[Notification No. NCL/COM/66600]
