CIRCULAR
SEBI/HO/CDMRD/CDMRD_DRM/P/CIR/2021/689 December 16, 2021
To
The Managing Directors / Chief Executive Officers
Of All Clearing Corporations having Commodity Derivatives Segment
Sir / Madam,
Sub: Cut-off Time for generation of last Risk Parameter File (RPF) for client’s
margin collection purpose and modification in framework to enable
verification of upfront collection of margins from clients in commodity
derivatives segment
1. Reserve Bank of India (RBI) in its ‘Statement on Developmental and
Regulatory Policies’ dated October 09, 2020 had announced that the Real
Time Gross Settlement System (RTGS) will be available round the clock on all
days of the year from December 2020. The National Electronic Funds
Transfer (NEFT) system is also made available round the clock since
December 2019 by RBI.
2. SEBI vide Circular no. SEBI/HO/CDMRD/DRMP/CIR/P/2019/149 dated
November 29, 2019 had mandated that the cut off time for the purpose of
determining minimum threshold of margins (Initial Margin/Extreme Loss
Margin) to be collected by Members from their clients shall be 5:00 PM for
commodity derivative contracts having trading hours beyond 5:00 PM due to
the limitations with availability of banking channels beyond 5:00 PM.
3. As both RTGS and NEFT facilities are now functional round the clock on all
days, SEBI Circular no. SEBI/HO/CDMRD/DRMP/CIR/P/2019/149 dated
November 29, 2019 stands withdrawn. Consequently, the Risk Parameter
Files currently used by the Clearing Corporations for collecting margins from
the Members shall also be used for generating margin obligations from the
clients throughout the trading hours in the commodity derivatives segment.
4. Accordingly, in the framework prescribed for enabling verification of upfront
collection of margins from clients vide SEBI Circular no.
SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated July 20, 2020, para 2 of clause
(i) of Annexure to the circular is modified as under:
Page 1 of 2
“Further, for commodity derivatives segment, clearing corporations shall send
an additional minimum two snapshots for commodity derivative contracts
which are traded till 9:00 PM and additional minimum three snapshots for the
commodity derivatives contracts which are traded till 11:30/11:55 PM.
Margins/EOD margins shall be determined as per the relevant Risk Parameter
Files.”
5. The circular shall be effective from January 15, 2022.
6. This circular is issued in exercise of the powers conferred under Section 11
(1) of the Securities and Exchange Board of India Act, 1992, to protect the
interests of investors in securities and to promote the development of, and to
regulate the securities market.
7. This circular is available on SEBI website at www.sebi.gov.in.
Yours faithfully,
Priyanka Mahapatra
Deputy General Manager
Division of Risk Management
Commodity Derivatives Market Regulation Department
priyankam@sebi.gov.in
Page 2 of 2