Revised slabs for incremental ALBM and incremental MCFS margins - SEBI - SMDRP/Policy/Cir-25/2001

Circulars SECURITIES AND EXCHANGE BOARD OF INDIA SECONDARY MARKET DEPARTMENT Mittal Court, B Wing, First Floor, 224, Nariman Point, Mumbai 400 021 SMDRP/Policy/Cir-25/2001 March 28, 2001 The President/Executive Director/Managing Director of all the Stock Exchanges Sir/Madam, Sub: Revised slabs for incremental ALBM and incremental MCFS margins. Please refer to our earlier circular No. 31 dated July 27, 2000 regarding Automated Lending and Borrowing Mechanism (ALBM) and circular No. 32 dated July 27, 2000 regarding Modified Carry Forward System (MCFS) and circular no. 39 and 40 of 2001 dated August 24, 2000 regarding changes in the earlier circulars, wherein it was advised that the incremental carry forward margin would be on a net basis. It has now been decided that the incremental MCFS /incremental ALBM/ incremental BLESS margin would be calculated and 7collected on a gross basis at client level based on the data generated from the system. In case the gross carry forward position in MCFS/or gross outstanding position market position in ALBM/BLESS in any exchange, in any scrip, exceeds the parameters mentioned below, the additional margin shall be levied, at a rate which is higher of the rates determined as per the tables below with effect from April 02, 2001: Gross Outstanding Market Position (Rs. in crores) OR Gross carry forward positions (as %age of company s paid up capital) Rate of margin (%) Exceeding 100 and upto 150 OR Exceeding 3% Going upto 4% 5 Exceeding 150 and upto 200 OR Exceeding 4% Going upto 6% 10 Exceeding 200 and upto 250 OR Exceeding 6% Going upto 8% 15 Exceeding 250 and upto 400 OR Exceeding 8% Going upto 10% 20 Exceeding 400 and upto 500 OR Exceeding 10% going upto 15% 25 Exceeding 500 OR Exceeding 20% 30 Once this margin is imposed by any Exchange having ALBM or MCFS facility, the other Exchanges having ALBM or MCFS will also follow the same from the start of next settlement.You are advised to take note of the revised slabs. Yours faithfully P K Kuriachen Deputy General Manager Secondary Market Depository, Research Publications Department e-mail:[email protected]