Mumbai, Oct 8: Four major stock exchanges have collected margins including additional capital of over Rs 3122 crore on October 5 as against a gross exposure of Rs 9156 crore on these exchange. This, according to Sebi, indicates that there is enough cover for the market in terms of safety. Sebi chairman D R Mehta has asked stock exchanges to keep a close watch on the market in the current scenario.The review of safety measures follows the surge in the market and the euphoria resulting from the election results. Though Sebi does not intend to impose higher margins, it has stated that exchanges are free to do so if the situation warrants.
In addition to the margins collected, the trade guarantee fund with the SEs add up to Rs 1,200 crore and base capital accounts for around Rs 700 crore and membership card value is around Rs 1000 crore. All these would add up to a cushioning of over Rs 6,000 crore, indicating the safety cover in an volatile market. On October 5, against a gross exposure of Rs 5,000 crore the margins collected including additional capital was Rs 1,604 crore. On the NSE margins of Rs 1055 crore were collected against an exposure of Rs 2626 crore. The figures were Rs 726 crore and Rs 149 crore for Delhi Stock Exchange and Rs 804 crore and Rs 315 crore for the Calcutta Stock Exchange.
On October 6, the margins collected on BSE was Rs 1,611 crore against a gross exposure of Rs 4780 crore. On the NSE against an exposure of Rs 4,503 crore, the margins were Rs 1081 crore. The significance of the margin collection figures indicate the safety of the market. This is crucial especially when market players are expecting a surge in FII inflows. The safety of the market is an important prerequisite for sustained inflow of FII funds.
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