Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday put in place additional risk management measures for the derivatives segment. These measures pertain to margin collection requirement and computation of liquid net worth for the equity derivatives segment. The provisions of the circular will be effective from June 1.
With regards to client’s margin collection requirement in the equity derivatives segment, SEBI said that clearing members or trading members should include initial margin, exposure margin or extreme loss margin, calendar spread margin and mark to market settlements. Client margins are required to be compulsorily collected and reported to exchange or clearing corporation.
This is likely to have a negative impact on option writers and traditional…
