SECURITIES AND EXCHANGE BOARD OF INDIA
SECONDARY MARKET DEPARTMENT
Mittal Court, B Wing, First Floor,
224, Nariman Point, Mumbai 400 021
SMDRP/Policy/Cir-25/2001
March 28, 2001
The President/Executive Director/Managing Director
Of all the Stock Exchanges
Sir/Madam,
Sub: Revised slabs for incremental ALBM and incremental MCFS margins.
Please refer to our earlier circular No. 31 dated July 27, 2000 regarding Automated Lending and Borrowing Mechanism (ALBM) and circular No. 32 dated July 27, 2000 regarding Modified Carry Forward System (MCFS) and circular no. 39 and 40 of 2001 dated August 24, 2000 regarding changes in the earlier circulars, wherein it was advised that the incremental carry forward margin would be on a net basis.
It has now been decided that the incremental MCFS /incremental ALBM/ incremental BLESS margin would be calculated and 7collected on a gross basis at client level based on the data generated from the system.
In case the gross carry forward position in MCFS/or gross outstanding position market position in ALBM/BLESS in any exchange, in any scrip, exceeds the parameters mentioned below, the additional margin shall be levied, at a rate which is higher of the rates determined as per the tables below with effect from April 02, 2001:
| Gross Outstanding Market Position
(Rs. in crores)
|
OR |
Gross carry forward positions (as %age of company’s paid up capital) |
Rate of margin
(%)
|
| Exceeding 100
and upto 150
|
OR |
Exceeding 3%
Going upto 4%
|
5 |
| Exceeding 150
and upto 200
|
OR |
Exceeding 4%
Going upto 6%
|
10 |
| Exceeding 200
and upto 250
|
OR |
Exceeding 6%
Going upto 8%
|
15 |
| Exceeding 250
and upto 400
|
OR |
Exceeding 8%
Going upto 10%
|
20 |
| Exceeding 400
and upto 500
|
OR |
Exceeding 10%
going upto 15%
|
25 |
| Exceeding 500 |
OR |
Exceeding 20% |
30 |
Once this margin is imposed by any Exchange having ALBM or MCFS facility, the other Exchanges having ALBM or MCFS will also follow the same from the start of next settlement.
You are advised to take note of the revised slabs.
Yours faithfully
P K Kuriachen
Deputy General Manager
Secondary Market Depository,
Research & Publications Department
e-mail:kuriachen@sebi.gov.in