To
All Foreign Institutional Investors Custodians of Securities
Dear Sir/Madam,
PAYMENT OF VOLATILITY MARGINS
SEBI vide its circular SMDRP/Policy/Cir-35/98 dated December 4th, 1998 had made it mandatory for the brokers to collect margins from clients in all cases where the margin in respect of the client in the settlement, would work out to be more than Rs. 50,000.
"No exemptions to be allowed in the applicability of volatility margins to any class of investors. This means that the volatility margin will also be applicable to the positions of financial institutions, foreign institutional investors, banks and mutual funds. "
" ...institutions will be required to pay volatility margin at the applicable rate announced by exchanges on their net outstanding sale position at the end of day only and not on buy positions. "
Yours faithfully,
P.GUPTA GENERAL MANAGER E-MAIL pgupta@ sebi.gov.in WEB SITE: http//www.sebi.gov.in FAX : 00 91 22 2845776 TEL: 00 91 22 2830614