The Multi Commodity Exchange of India Limited (MCX) on March 05, 2025, issued the notification regarding the Guidelines on consideration of VAR Margin Rate/Haircut on securities for Margin Collection & Reporting.
The following has been stated namely: -
• For the purpose of client Margin collection and reporting, the member shall compute the value of such securities as per the closing rate on T-1 day as reduced by the appropriate haircut at a rate not less than the VAR margin rate of the security on that day i.e. T-1 day.
• Exchange has received representations from member associations that while providing collateral limit since Clearing Corporations consider VAR margin at the beginning of the T Day for the purpose of valuation of margin pledge-repledge securities, the same practice of applying VAR margin at the beginning of T Day should also be permitted while computing the value of securities for the purpose of client Margin collection and reporting by Trading Member.
• In view of the above and in consultation with Broker’s Industry Standards Forum (ISF), members are requested to note that for the purpose of client Margin collection and reporting, the member shall compute the value of securities as per the closing rate on T-1 day as reduced by the appropriate haircut at a rate not less than the VAR margin rate of the security at the beginning of T day. Detailed guideline for the same is attached herewith as Annexure A.
The provisions of circular shall be effective from May 02, 2025
[Notification No. MCX/INSP/123/2025]
