The National Stock Exchange (NSE), on March 06, 2025, issued a notification regarding the Review of Margin Framework for Commodity Derivatives Segment.
This circular modifies Circular in reference to SEBI circulars on Review of Margin Framework (January 27, 2020) and Volatility Scan Range (VSR) for Options (January 11, 2021). Commodities have been categorized based on volatility, with specified Minimum Initial Margin (IM), Short Option Minimum Margin (SOMM), Minimum Margin Period of Risk (MPOR), and Minimum VSR.
Low-volatility non-agri commodities like Gold and Lead have lower margin requirements (6%), whereas high-volatility commodities like Silver, Crude Oil, and Natural Gas have higher margin requirements (up to 33%) as per previous circulars. Additionally, MPOR for options on goods shall be at least three days or the MPOR of corresponding futures contracts, whichever is higher. Other margins, including Extreme Loss Margin, ICMTM Margin, Tender Period Margin, and Additional Margins, will remain unchanged.
These provisions will be effective from April 1, 2025, and members are advised to take note and ensure compliance.
[Notification No. NCL/COM/66987]
