Sebi advances margins determination period for commodity derivatives

In a major relief to commodity derivatives trading members, markets regulator the Securities and Exchange Board of India (Sebi) has advanced margins determination period by six hours.

Effective April 1, 2020, cut off time shall be kept at 5 pm for the purpose of determining minimum threshold of margins to be collected by members from their clients. Till then, the margins computation would continue to be done at 11.30 pm.

Sebi said in a circular that risk parameter file (RPF) to be generated at cut-off time shall be applied on clients end-of-day (EOD) portfolio for the purpose of determining minimum threshold of