MARGINING OF INSTITUTIONAL TRADES IN THE CASH MARKET

In order to provide a level playing field to all the investors in the cash market as in the case of derivatives market, it has been provided w.e.f. 21st April 2008 that all institutional trades in the cash market would be subject to payment of margins as applicable to transactions of other investors. To begin with, from 21st April 2008, all institutional trades in the cash market would be margined on a T+1 basis with margin being collected from the custodian upon confirmation of the trade. Subsequently, with effect from 16th June 2008 the collection of margins would move to an upfront basis.