Sebi tweaks margin collection time for commodity derivatives

NEW DELHI: Markets regulator Sebi on Friday tweaked cut-off time for the collection of margins from commodities traders that are traded beyond banking hours.

Securities and Exchange Board of India (SEBI) in a circular said instead of the end of day (EoD), now the cut-off time for the purpose of determining minimum threshold of margins to be collected by members from their clients will be 5 pm.

The directive will be effective from April 1, 2020.


Sebi said Risk Parameter File (RPF) to be generated at cut-off time shall be applied on clients’ EOD portfolio for the purpose of determining minimum threshold of margin to be collected from clients by members.

Similarly for the purpose of determining minimum threshold of Extreme Loss Margin (ELM) to be collected from clients, EOD client portfolio shall be valued at the half an hour weighted average trade price arrived at cut-off time stipulated above.

For derivatives contracts that trade till 5 pm, the cut-off time has been kept at the end of day.

Sebi further clarified that there shall not by any change in norms regarding margin computation and collection by the clearing corporations from its members.