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 pre-defined time window. The member shall have to
report the margin collected as at EOD and Peak margin, highest among 4 snapshoits,
during the day. Both the margins, EOD and Peak, will be compared and 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 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 ie 100% collection will be required.