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Sebi has made it mandatory to collect all margins like VaR, ELM, Additional, Delivery etc from clients. In case of short collection penalty provisions are given and it is already implemented from 16th September 2020. Out of these margins, for VaR and ELM margin if minimum 20% upfront margin is collected then no penalty will be charged for this. Rest margins are required to be collected in full and if not collected penalty will be imposed.
Further Sebi issued guidelines to collect Peak margin also. For this, Exchange will take 4 snap shots, randomly, in a pre-defined time window. The member shall have to report the margin collected as at EOD and Peak margin, highest among 4 snapshots, during the day. Both the margins, EOD and Peak, will be compared and the higher will be considered for collection of margin in case of short collection and levying of penalty. From 1st October 2020, Peak margin collection reporting is started but no penalty is charged. From 1st December, there will be a requirement of collection of 25% peak margin and in case of short collection it will attract penalty. This will be increased gradually: From 1st March 2021 it will be 50%, from 1st June 2021 75%, and from 1st September 2021 full peak margin i.e. 100% collection will be required.
