Margin provisions for intra-day crystallised losses

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..... currently levies margin based on net buy value (Buy Sales value of underlying) of unsettled trades in the cash segment and based on the net open positions (Open Interest) in the derivatives segments. As such, the risk of crystallised obligations (Profit/Loss on trade) incurred due to intra-day trades does not get fully captured in the margining system and consequently in the clearing corporation .....

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..... xceed the free collateral available with the Clearing Corporation, then the entity shall be put into risk reduction mode as specified in Para 7 of SEBI Circular no. CIR/MRD/DP/34/2012 dated December 13, 2012. (c) Crystallised losses shall be calculated based on weighted average prices of trades executed. (d) Adjustment of intraday crystallised losses shall not be done from exposure free liq .....

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