SEBI vide its circular dated May 2, 2018 on 'Additional Risk management measures for derivatives segment' has mandated compulsory collection and reporting of below types of margins in derivative segment from the clients with effect from July 1, 2018.

1 -  Initial Margin, 2- Exposure Margin/Extreme Loss Margin, 3 - Calendar Spread Margin, 4 - Mark to Market Settlements

Accordingly, all the above margins will be debited to your trading account for any open derivatives positions. You are requested to make adequate margins available with us for reporting to the Exchanges. It may be noted that 'Mark to Market Settlements' should be available only in the form of Cash i.e. Clear credit ledger balance and by the way of funds transfer. 

Further, in case of shortfall in the above margin including Mark to Market Settlements, the penalty of ranging between 0.5% to 1% of the margin shortfall will be levied by the Exchange. 

In case Short/Non Collection of Margin for a client takes place for more than 3 Consecutive days, then penalty of 5% of shortfall amount shall be levied for each day of continued shortfall beyond the 3rd day of shortfall. In case Short/Non Collection of Margin for a client takes place for more than 5 days in a month, then penalty of 5% of shortfall amount shall be levied for each day, during month, beyond 5th Day of shortfall by the Exchange. 

It may be noted that the above penalty will be debited to your trading account. We request you to make adequate margins available continuously with us including Mark to Market Settlements in the form of cash for your open derivative positions in order to avoid the above penalty.

For more details:

Click here to view the SEBI circular on Margin Collection Requirement for Derivatives Segment