Payment of Margins

The initial margin and extreme loss margins are payable upfront by the clearing members. Members are required to collect initial margins and extreme loss margins from their client/constituents on an upfront basis. It is mandatory for all clearing /trading members to report details of such margins collected to the Clearing Corporation as per the current procedure for reporting of client margins. Clearing Corporation may levy penalty for non/short reporting/collection of margins as may be specified from time to time.

Mode of payment of margin

Clearing members are required to provide for margin in any one or more of the eligible collateral modes as currently applicable for Currency Futures. The margins are collected /adjusted from the liquid assets of the member on a real time basis.

Effect of failure to pay margins

Non-fulfilment of either the whole or part of the margin obligations are treated as a violation of the Rules, Bye-Laws and Regulations of the Clearing Corporation. The violation attract actions as currently applicable in Currency Derivatives Segment.

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The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

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