Peak margin requirements from Sep 1st 2021 & its effects

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Relaxed from from 1st August, 2022.

SEBI's Circular on "Changes to the Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segments"

As we all know SEBI had in 2020 introduced peak margin requirements, taking 5 snapshots at random intervals to check whether sufficient margins were maintained or not. And if there was any shortfall it resulted in a peak margin penalty. SEBI in its recent circular made changes to this. According to the circular: The margin requirements to be considered for the intra-day snapshots, in derivatives segments (including commodity derivatives), shall be calculated based on the fixed Begi…