Home/Blogs/FAQ on Peak Margin reporting of Marginable Custodian Participant Trades in Capital Market Segment

FAQ on Peak Margin reporting of Marginable Custodian Participant Trades in Capital Market Segment

Published Date: 08 Dec 2020Updated Date: 05 Jan 20236 mins readBy MOFSL
FAQ on Peak Margin

Earlier, on November 27, 2020, NSE Clearing Limited had issued a circular (NCL/CMPL/46503) on Peak Margin reporting of Marginable Custodian Participant trades in the Capital Market Segment. Members had many queries regarding the details in that circular. So, to help clarify the doubts and queries raised, NSE Clearing Limited issued a circular (NCL/CMPL/46505) on November 28, 2020.

The circular had an annexure with the answers for some frequently asked questions (FAQs) about the Peak Margin reporting of Marginable Custodian Participant trades in the Capital Market Segment.

Here are the details about the clarifications.

1.    Trading Members will now need to report the peak margins for Custodian Participant trades in the MG13 reporting, considering the collection of margins by the Custodian. This is because the penalties are to be levied by the Clearing Corporations on the basis of the reporting made by the Custodian.
2.    If a Trading Member reports a shortage, a penalty will be levied on the Trading Member and collected from the Custodian.
3.    If the Custodian reports a shortage instead, and the Trading Member (executing broker) reports no shortage, then a penalty will be levied on the Custodia, depending on the amount of shortage reported.
4.    If both the Trading Member and the Custodian do not report any shortage, then no penalty shall be levied on either party.
5.    During the interim process, the Clearing Corporation will continue to provide intraday peak snapshots.
6.    The cut off time for reporting peak margins collection by the Trading Member and the Custodian through email will continue to be the T+5 day.
7.    In case of any erroneous email confirmation, the revised reporting will be accepted on a best effort basis. For this, custodians are required to ensure proper due diligence before sending the email to Clearing Corporations.

 

You may also like…

Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C
Click here to see your activities