In the Modified Carry Forward System (MCFS), which was replaced by BLESS, brokers were expected to pay daily margins in addition to other margins like additional volatility margin (AVM), gross exposure margin, carry forward margin and mark to market margin. In the earlier regime, BSE had allowed its members to set off the loss in the mark to market margin with that in daily or gross exposure margin and brokers were supposed to pay the amount, whichever was higher. In the new scenario, even if the broker has borne the loss in mark to market he is not allowed to take the set off but he has to pay both, the mark to market and daily margins in BLESS, complain the brokers.

While shifting from MCFS to BLESS, BSE had claimed that all the margins and their way of computation will remain same and accordingly the risk containment measures would be imposed. BSE, in its circular to the members dated 18th January, said that all members would be required to pay the gross exposure margin on daily basis, which would be computed on the basis of their scrip-wise outstanding cumulative of net purchases plus net sales including scrips in no-delivery period.

The exchange has also changed the method of computing gross exposure margin (GEM). Members with gross exposure less than Rs 1 crore are not required to pay GEM, while those with gross exposure between Rs 1 crore and Rs 5 crore will have to pay 7.5 per cent of the excess over Rs 1 crore as GEM. Brokers whose gross exposure is above Rs 5 crore and upto Rs 10 crore have to pay Rs 30 lakh plus 10 per cent in excess of Rs 5 crore as GEM. Between Rs 10 crore and Rs 15 crore of exposure would attract a GEM of Rs 80 lakh plus 12.5 per cent in excess of Rs 10 crore. Exposure above Rs 15 crore and upto Rs 20 crore will attract GEM of Rs 1.425 crore plus 15 per cent in excess of Rs 15 crore. Exposure above Rs 20 crore and upto Rs 100 crore will attract GEM of Rs 2.175 crore plus 20 per cent in excess of Rs 20 crore while exposure above Rs 100 crore will attract gross exposure margin of Rs 18.175 crore plus 25 per cent in excess of Rs 100 crore, the circular said.