NOTICE
CSE/Notices/SEBI/2012/N5
May 18, 2012
Re: Margining of
institutional trades in the cash market
Members of
the Exchange are hereby informed that the Exchange has received a Circular from
SEBI vide Ref. No MRD/DoP/SE/Cir-18/2008, dated May 22, 2008
regarding
the above mentioned subjects. The contents of the said Circular are reproduced
hereunder for information and necessary action of the Members.
Quote: -
MRD/DoP/SE/Cir-18/2008
May 22, 2008
The
Executive Directors/Managing Directors of all Stock Exchanges
Dear
Sir / Madam,
Sub:
Margining of institutional trades in the cash market
1. Please refer to our
circular No. MRD/DoP/Cir-06/2008 dated March 19, 2008 on
the captioned subject.
2. In the light of difficulties expressed by the market
participants regarding implementation of upfront margining of institutional
trades in the cash market, it has been decided to keep the same in abeyance.
Accordingly, institutional trades in the cash market would continue to be
margined on T+1 basis till further directions.
3. The Stock Exchanges are advised to bring the provisions
of this circular to the notice of the member brokers/clearing members and also
disseminate the same on their website.
4. This circular is being issued in exercise of powers
conferred under Section 11 (1) of the Securities and Exchange Board 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,
S
V Murali Dhar Rao
Unquote:
Members are requested to take note of the aforesaid
guidelines/circulars of SEBI and act accordingly.
M.A.V. Raju
Deputy General Manager