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TMI BlogCross Margining across Exchange traded Equity (Cash) and Exchange traded Equity Derivatives (Derivatives) segmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... ations. Dear Sir, Sub: Cross Margining across Exchange traded Equity (Cash) and Exchange traded Equity Derivatives (Derivatives) segments This is in continuation of SEBI Circular No. MRD/DoP/SE/Cir-13/2008 dated May 05, 2008 on the cross margining facility across cash and derivatives segments for institutional trades. In order to improve the efficiency of the use of the margin capital by marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash segment b. A basket of positions in index constituent stock/stock futures, which is a complete replica of the index in the ratio specified by the Exchange/Clearing Corporation, shall be eligible for cross margining benefit. c. The positions in the derivatives segment for the stock futures and index futures shall be in the same expiry month to be eligible for cross margining benefit. 2. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g partially replicated portfolio into a fully replicated portfolio by taking opposite positions in two accounts. However, for the purpose of compliance and reporting requirements, the positions across both accounts shall be taken together and client shall continue to have unique client code. 4. Settlement To begin with, a client may settle through a trading member / clearing member / custodian, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r segment. 6. Agreement The Exchange / Clearing Corporation shall enter into agreement with client / clearing member / trading member / custodian, as the case may be, clearly laying down the inter-se distribution of liability / responsibility in the event of default. 7. The Stock Exchanges are advised to: a. put in place the adequate systems and issue the necessary guidelines for implementing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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