SMDRP/POLICY/Cir-25/2000

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..... Director Of all the Stock Exchanges Dear Sir/Madam, The Group on Risk Management for Equity Markets constituted by SEBI met on June 21, 2000, and the following decisions were taken: A. Compulsory Rolling Settlement Volatility Margin The additional volatility margin shall not be applicable for scrips in the compulsory Rolling Settlemen .....

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..... i. Volatility margin would be applicable if volatility (six weekly(high-low)/low) exceeds 80% instead of of 60% prescribed earlier. ii. The slabs for volatility margins and the margin rates would be as follows: Volatility Percentage Margin More than 80% upto 100% 10% .....

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..... D) Encouragement for Delivery Based Transactions If in respect of trades marked for delivery at the end of the day (to be certified by broker), the margins are secured by a bank guarantee from the investor in favour of the broker (along with back-to-back bank guarantee by broker in favour of the exchange) or in favour of the exchange. The exchange may not insist on any .....

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