Regulatory measures taken by SEBI in view of ongoing market volatility

Economics 06 July 2020 12:59:PM

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Dear Investors,

We wish to inform you that as per SEBI Press release no.18/2020 & NSE Circular no NCL/CMPT/43967 dated 20th March 2020 some regulatory measures taken in view of ongoing market volatility.

Accordingly following modification shall be introduced with effect from 20th March 2020 to 22nd April 2020.

 

For FNO Stock:

 

1) For stocks in F&O segment meeting the following criteria, MWPL may be revised to 50% of the existing levels:

a) Average Daily Price High Low variation percentage (during last 5 trading days) should be more than or equal to 15%    OR

b) Average MWPL utilization percentage (during last 5 trading days) should be more than or equal to 40%.

 

2) In case of End-of-day positions as on date are more than the revised position limits shall not be considered as violation. However, Client shall be permitted to be hold the existing position till expiry or close-  out, whichever is earlier.

 

3) List of Securities which shall move into Ban Period from Monday March 23, 2020 due to Revision in limits shall be as given below:

ADANI ENTERPRISES LIMITED

INDIABULLS HSG FIN LTD

VODAFONE IDEA LIMITED

JINDAL STEEL & POWER LTD

JUSTDIAL LTD.

NCC LIMITED

PUNJAB NATIONAL BANK

PVR LIMITED

YES BANK LIMITED

 

4) Monitoring of Market Wide Position Limit (MWPL) violation:

If any Client/Proprietary account who have increased the existing positions or has created a new position or if done intraday trade in ban period then it should be a MWPL violation (PFA Chart for violation)

 

In the event of violation, the following penalty would be charged to the members for every day of violation:

a.  1% of the value of the quantity in violation (i.e., excess quantity over the allowed quantity, valued at the closing price of the security in the normal market of the Capital Market segment of the Exchange) per client

or

b.  Rs.5,00,000 per client, whichever is lower, subject to a minimum penalty of Rs.50,000/- per violation / per client.

 

For Cash Stocks:  

 

5) As per mentioned above in FNO Stocks point no. 1 : (Below mentioned margin only for the cash segment stocks for which FNO stocks is in MWPL.)

For such stocks, margin rate in Cash Market shall be increased as follows:

1] Minimum 20% to be effective from March 23, 2020

2] Minimum 30% to be effective from March 26, 2020

3] Minimum 40% to be effective from March 30, 2020

Note: Proposed margins would only be applied in Cash Market (i.e., derivatives contracts on these stocks will continue to be charged margins as per the extant framework)

 

6) Increase in margin for Non-F&O Stocks in Cash Market

For stocks with price band of 20% and witnessing an intraday (high-low) price movement of more than 10% for 3 or more days in last 1 month, minimum margin rate shall be increased in a phased  as follows:

1] 30% to be effective from March 23, 2020

2] 40% to be effective from March 26, 2020

3] 40% or Max intraday high-low variation (during last 1 month), whichever is higher, to be effective from March 30, 2020.

 

7) How does this affect your trading in the Equity & Derivatives  Segment ?

·  Per lot selective stocks margin will be increase.... As per attached list

·  Intraday limit as well as carry forward limit will be reducing from Monday onwards.

·  Due to Var Margin increase by exchange , collateral value would be reduce so more shortfall will be there for existing & new position created clients.

·  Physical Delivery margin would increase for those stock for which margin increased in cash market.

·  Branches/Franchisee should collect Initial margin from client .

·  The Exposure for the transaction will be given on the basis of a clear balance only. Unclear Cheque or to be collected cheque will be excluded from Exposure.

·  All Cash position will not be allowed more than 1 times of cash balance available with us.

·  Clients are advised to do IMPS or online fund/NEFT/RTGS transfer in case of Debit balances or further exposure.

·  The Head office shall clear all outstanding positions of the clients once it reaches 75-80%. Mtm loss.

 

Kindly take note while entering any trade from March 23, 2020. 

 

https://supportgepl.freshdesk.com/a/solutions/articles/35000150816