Review of Margining with respect to Exchange Traded Funds (ETFs)

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..... gement framework for Cash Market specified by SEBI vide circular no. MRD/DoP/SE/Cir-07/2005 dated February 23, 2005 and modification thereto. The following additional provisions are hereby incorporated in the said framework: A. Use of VaR Methodology with respect to Exchange Traded Funds I. Index ETFs are based on a basket of securities. However, for computing margins on ETFs they are trea .....

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..... of margin capital by market participants, it has been decided to extend cross margining facility to ETFs based on equity index and its constituent stocks for following off-setting positions in cash market segment, as follows: ETFs and constituent stocks (in the proportion specified for the ETF) to the extent they offset each other, ETFs and constituent stocks futures (in the proportion sp .....

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..... of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. Yours faithfully, Maninder Cheema Deputy General Manager 022-26449754 [email protected] - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement .....

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