Sebi extends cross-margin facility to all investors

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Mumbai: 30,000 crore to 10,000 crore levels in the current year.

According to the new norms, the facility is extended to the index futures position and constituent stock futures position in derivatives segment, the index futures position in derivatives segment and constituent stock position in cash segment and stock futures position in derivatives segment and the position in the corresponding underlying in the cash segment. This largely covers a variety of positions that a trader can take and get the cross margin benefit.

Importantly, now a basket of positions in index constituent stock or stock futures, which is a complete replica of the index in the ratio specified by the exchange or clearing corporation, shall be eligible for cross margining benefit. This means that traders can build index replicated portfolio and also use the cross margining facility incase they want to take counter positions.

“The positions in the derivatives segment for the stock futures and index futures shall be in the same expiry month to be eligible for cross margining benefit,” said the Sebi directive. To begin with, a spread margin of 25% of the total applicable margin on the eligible off-setting positions shall be levied in the respective cash and derivative segments, it further added.