Risk Management in Equity Markets held on September 19, 2000, exchanges are advised - SEBI - SMDRPD/Policy/Cir-52/2000

Circulars SECURITIES AND EXCHANGE BOARD OF INDIA SECONDARY MARKET DEPARTMENT Mittal Court, A Wing, Gr. Floor, 224, Nariman Point, Mumbai 400 021 SMDRPD/Policy/Cir-52/2000 November 06, 2000 The President/Executive Director/Managing Director of All Stock Exchanges Dear Sir/Madam, Pursuant to the discussions and decisions taken in the meeting of the Group on Risk Management in Equity Markets held on September 19, 2000, exchanges are advised that: The exchanges may collect a uniform margin of 12.5% on the carry forward position in the Modified Carry Forward System (MCFS) and on the trade positions in the Automated Lending and Borrowing Mechanism (ALBM) instead of the stratified margin slabs, as is the practice now. As Carry Forward under Rolling Settlement (CFRS), Automated Lending and Borrowing Mechanism under Rolling Settlement (ALBRS) and Continuous Net Settlement (CNS) are new products, the Exchanges would undertake educational and awareness programs for the investors to familiarise them with the features of these products. Thanking you, Yours faithfully P K BINDLISH Division Chief Secondary Market Depository, Research Publications Department e-mail : [email protected]