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FAQ (Frequently Asked Questions)
Clearing & Settlement
1) What deposits does a member have to keep with the exchange and what exposure the member will get against it?
Deposits are given at stages as under as per the applicable category of membership:
Applicability of Security Deposit Category of Membership
Exposure TM TCM ITCM PCM
Initial Security Deposit No Yes Yes Yes Yes
Additional Security Deposit No Yes Yes Yes Yes
Base Minimum Capital Yes Yes Yes Yes No
Base Capital Yes No No No Yes
Cash Deposit No No Yes Yes No
Initial Security Deposit Initial Security Deposit is required to be submitted to the Exchange at the time of obtaining membership. Member can deposit such initial security deposit in the form of Cash (minimum 50%), and the balance either through Bank Guarantee and/or Fixed Deposit receipt from Approved Banks. Additional Security Deposit To increase the exposure limits for trading, Members may remit additional security deposit in the following forms:
Cash; Cash Equivalent: [Bank Guarantee (BG)& Fixed Deposit Receipt (FDR) from approved banks] Approved securities in demat form with the approved custodian(s) of the Exchange. Warehouse receipt(s) of approved commodities issued by designated warehouse / vault in physical
form.
Additional deposits are governed by interim ratios as explained in Sr. No. 11.
Base Minimum Capital:
Members shall be required to comply with the Base Minimum Capital requirement of the Exchange, Members have to deposit by way of interest free Base Minimum Capital (BMC) of Rs. 10 lacs and Rs. 50 lacs for without Algo trading and with Algo trading respectively. Minimum 25% of the above deposit shall be in the form of cash and balance 75% may be in the form of cash equivalents like Fixed Deposit/ Bank Guarantee.
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Base Capital:
All Trading Members (TM) are required to provide Base Capital of Rs 5 lakhs (in cash) on which full exposure would be provided by the Exchange through its ITCM/PCM. Base Capital is required to be maintained at all times.
Cash Deposit:
All Institutional Trading cum Clearing Members (ITCMs)/Professional Clearing Members (PCMs) are required to provide cash deposit of Rs 50000/- for each TM affiliated to clear the trade through them.
2) What is Bank Gateway System (BGS)?
Bank Gateway System (BGS) has been introduced in Clearing Banks whereby Clearing Banks can
effect online confirmation for member request for increase of cash margin deposit. On confirmation
from the banks, exposure limit is enhanced.
3) What is the Cash – Non cash ratio to be maintained by the members? When is such ratio exempted?
Member has to maintain cash & cash equivalent deposits in the ratio of 1:3. Any cash equivalent collateral in excess of the permissible valuation shall not be considered for the purpose of margin. If the member maintains Rs. 50.00 lakhs in form of cash and gives an undertaking to maintain the same at all point of time with the Exchange, as per Collateral and Risk Management master circular no MCX/C&S/328/2016, then the member is exempted from the above applicable ratio.
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4) Which are the approved banks for the purpose of Bank Guarantee / Fixed Deposit? Sr.
No. Bank Name
1 Allahabad Bank
2 Andhra Bank
3 Axis Bank Limited
4 Bank of America
5 Bank of Baroda
6 Bank of India
7 Bank of Maharashtra
8 Canara Bank
9 Central Bank of India
10 Citibank N.A.
11 Corporation Bank
12 Credit Agricole
13 DBS Bank Limited
14 DCB Bank Limited
15 Dena Bank
16 Federal Bank Limited
17 HDFC Bank Limited
18 ICICI Bank Limited
19 IDBI Bank Limited
20 IDFC Bank Limited
21 Indian Bank
22 Indian Overseas Bank
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23 IndusInd Bank Limited
24 Jammu & Kashmir Bank Limited
25 Karnataka Bank Limited
26 Karur Vyasa Bank Limited
27 Kotak Mahindra Bank Limited
28 Lakshmi Vilas Bank Limited
29 Oriental Bank of Commerce
30 Punjab and Sind Bank
31 Punjab National Bank
32 RBL Bank Limited
33 South Indian Bank Limited
34 State Bank of Bikaner and Jaipur
35 State Bank of Hyderabad
36 State Bank of India
37 State Bank of Mysore
38 State Bank of Patiala
39 State Bank of Travancore
40 Syndicate Bank
41 Tamilnad Mercantile Bank Limited
42 UCO Bank
43 Union Bank Of India
44 United Bank Of India
45 Vijaya Bank
46 Yes Bank Limited
(Clearing Banks are in bold)
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5) How can I increase margin and where to verify its status?
The margin can be increased by giving Cash / Bank Guarantee / Fixed deposits as additional security deposit, approved shares & units of Mutual fund in Demat form with the custodian and the warehouse receipts of approved commodities. (Refer relevant circulars) You may also refer to the relevant portion of the website for ease of reference. Click here to direct to the relevant web page.
Enhanced collaterals can be viewed online through eXchange web based application.
6) How to release margin / Additional security deposit and where to verify its status?
The member can release the additional deposit.
The Exchange, subject to clearance of Exchange dues, will consider the request for withdrawal
of the additional deposit only.
Request for release can be considered only when the member has not utilized such deposit /
amount for margin at the time of release.
The request has to be sent in the format and mode as specified by the Exchange. Request can
either be in the prescribed format or electronically through e-Xchange.
Refund request would be rejected if margin utilization post refund crosses 89% of the eligible
deposit.
Reduced collaterals can be viewed online through eXchange web based application.
7) In whose name should the FDR/BG be issued?
The FDR should be drawn in the name of “MCX A/c (Name of Clearing Member)” or “Multi Commodity
Exchange of India Ltd. A/c (Name of Clearing Member)”.
The BG should be in favor of “Multi Commodity Exchange of India Limited”.
8) Can a member submit THIRD PARTY BANK GUARANTEE / FDR?
No
9) What should be the value of stamp paper on which BG is executed?
The Bank Guarantee should be executed on a non-judicial stamp paper of Rs.300 or the value
prevailing in the State where it is executed, whichever is higher.
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10) What valuation logic is applied to arrive at the value of eligible deposits?
Valuation Logic for the Member’s Collateral Deposits is as follows:
A member below cash balance of Rs.50.00 Lacs
Limit = Cash + min (3*cash, BG+FD) + (min (Cash+min (3*cash, BG+FD)), (WR+Sec))
Eligible WR collaterals = eligible collaterals (including BMC but excluding WR / 85 * 15
Collateral
Category
Permitted
Components
Remarks/limit
Cash Cash Full Limit
Cash Equivalent Bank Guarantee
Fixed Deposits
Permissible limit restricted to 3 times of cash margin
deposit
Non Cash
Collateral
o Eligible Securities
o Warehouse Receipts *
Governed by the upper cap as at
individual security/commodity level
overall security/commodity level
Also restricted up to sum total of Cash & Eligible cash
equivalent.
* The net of hair-cut valuation of the approved commodities shall not exceed 15% of the total collateral deposits of the member. The 15 % cap shall be over and above the commodity and member
level upper caps defined
A member with minimum cash balance of Rs.50.00 Lacs with undertaking for maintaining
minimum Rs.50.00 Lacs in Cash
Limit = Cash+BG+FD + (min (Cash+ BG+FD), (WR+Sec))
Eligible WR collaterals = eligible collaterals (including BMC but excluding WR / 85 * 15
Margin limits are uploaded into the system based on the valuation.
Every time an increase / release request of the member is processed, the system re-computes
the eligible limits based on the above method.
Members can take exposure in the market based on the limits uploaded.
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11) What is the minimum period for which a FDR/BG can be drawn? In case of a Fixed Deposit Receipt,
Initial Security Deposit - minimum period of 36 (thirty six) months
Additional Security Deposit - minimum period of 3 (three) Months
Base Minimum Capital: - Minimum period of 12 (twelve) months
In case of a Bank Guarantee,
Initial Security Deposit - minimum period of 12 (twelve) months plus 30 days claim period
Additional Security Deposit - minimum period of 3 (three) Months plus 30 days claim period
Base Minimum Capital: - Minimum period of 12 (twelve) months plus 30 days claim period
12) To which address should the collateral related documents be sent?
Clearing & Settlement Department,
Multi Commodity Exchange of India Limited,
3rd Floor Exchange Square,
Suren Road, Chakala,
Andheri (East), Mumbai-400093.
13) How can a member pledge Equity Shares as Additional Security Deposit?
a. Members are required to open a separate demat account with the Exchange approved
custodian(s) for depositing securities.
b. For this purpose, Members, who are individuals, may open an account in their name if
securities offered are held in their names. Members who are a partnership firm may open an
account in their partners' names if shares are held in the names of the partners as the case
may be, and Members who are corporate body may open an account in the corporate name or
in the name of their designated directors as the case may be depending upon the beneficiary
of shares. However, these accounts are required to be separate and used for the purpose of
such deposit of securities only.
14) Which are the approved custodians for pledge of equity shares?
1. HDFC Bank Limited Lodha - I Think Techno Campus, Alpha Building, 8th Floor, Next to Kanjur Marg Railway Station (East), Kanjurmarg (E) Mumbai – 400 042 Contact Details : Ms. Aparna Shisatkar /Mr. Ashish J. Mehta
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E-mail: [email protected] ; [email protected] ; [email protected]
2. Stock Holding Corporation of India Limited ( SHCIL ) SHCIL house, Plot No P/51 TTC Industrial Area, MIDC – Mahape, Navi Mumbai – 400 710 Contact Details: Mr. Ganesh Zodge E-mail: [email protected]; [email protected]
15) Which are the equity shares that can be pledged?
Members can deposit approved securities , as notified by the Exchange from time to time through its
circulars, in demat form with the approved custodian(s) of the Exchange towards additional deposit.
Click here to view the List of Approved Equity Shares
16) What is the maximum value of equity shares / units of mutual funds that can be
pledged to the exchange towards additional margin?
Equity shares and Units of Mutual Funds will be accepted from a member with the following upper
limits or such amount as may be decided from time to time:
Shares of single ISIN (Group 1) - upper limit of [Rs. 500 lakh]
Shares of single ISIN (Group 2) - upper limit of [Rs. 500 lakh]
Shares of single ISIN (Group 3) - upper limit of [Rs. 200 lakh]
Units of Mutual Fund Schemes (Group – 4) – upper limit of [Rs. 100 lakh]
Total of Shares and Mutual Funds of all the ISINs (collectively) - upper limit of [Rs. 2500 lakh]
17) Which securities are not accepted / eligible for pledge?
The following securities shall not be accepted for the purpose of security deposit:
Securities not as per the approved list;
Partly paid up securities;
Securities subject to any lock in period, buy back scheme, any charge or lien, encumbrance of any
kind or whose title is questioned before a Court or any regulatory body or such other limitations. Securities not in the name of Clearing Member.
18) What is the procedure of valuation adopted by the Exchange for pledged securities?
The securities shall be subject to hair cut as applied by stock Exchange from time to time. The
custodian does the valuation of the shares pledged after applying the hair cut specified. The limit is
given on the value so arrived after haircut subject to the Upper limit for each security and the
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collateral valuation criteria. Exchange accepts the valuation file from the Custodian thrice during the
day.
19) What in case the security pledged is discontinued from the Approved list of securities
by the Exchange?
In case of discontinuation of a security from the list of approved securities, the same shall not be
considered for the purpose of collateral valuation and the benefit granted against the same shall be
withdrawn. Members may request for the release of such securities.
20) How can a member pledge commodities/Warehouse Receipts (WR) as Additional
Security Deposit and where to verify its status?
Members can deposit warehouse receipt (WR) of approved commodities in physical form, through the
designated warehouses/vaults approved/appointed by the Exchange in this regard. These WR(s) shall
be pledged in favor of Multi Commodity Exchange of India Limited (the Exchange).
Enhanced collaterals can be viewed online through eXchange web based application.
21) What are the approved commodities that can be pledged? and what is the eligible
maximum limit of pledge for each commodity?
Sr.
No. Category Commodity Haircut %
Upper Cap per
Member
(Net of Hair-Cut)
1
Agri
Commodities
Cardamom 50% Rs. 50 Lacs
Cotton 50% Rs. 200 Lacs
Mentha Oil 50% Rs. 200 Lacs
2
Bullions
Gold
TCM Members 20% Rs. 5000 Lacs
ITCM/PCM Members 20% Rs. 10000 Lacs
Gold Guinea 20% Rs. 2500 Lacs
Silver
Rs. 5000 Lacs
a) Upto Rs.15 Crores b) In excess of Rs.15
Crores, upto 35 Crores c) In excess of Rs.35
Crores, upto 50 Crores
20%
25%
35%
Rs. 5000 Lacs
Total of Commodities for TCM Members
Total of Commodities for ITCM/PCM Members
Rs. 5000 Lacs
Rs. 10000 Lacs
Note:
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The upper cap of the valuation of warehouse receipts for all the commodities put together will be
Rs. 50.00 Crores/ 100.00 Crores subject to individual commodity wise upper caps.
The net of hair-cut valuation of the approved commodities shall not exceed 15% of the total
collateral deposits of the member. The 15 % cap shall be over and above the commodity and
member level upper caps defined
Commodities shall be valued at the closing price / settlement price of the previous day for the
near month contract of the commodity.
Once the near month contract enters the tender period, immediate next month contract shall be
considered for valuation.
22) What are the Warehouse Receipts that are not eligible/not acceptable for pledge as
Additional Security Deposit?
The following warehouse receipts shall not be accepted for the purpose of security deposit:
WR(s) where the lien is not marked / discharged in the favor of the Exchange;
WR(s) of the commodities that are not in the list of approved commodities;
WR(s) of the commodities whose quality certificate is not from the Exchange approved quality
assayer;
WR(s) of the commodities whose quality certificate is not valid or has expired or if the expiry date
is within 5 days from the date of deposit ;
WR(s) that are not of the designated warehouse/vault;
WR(s) subject to any charge or lien, encumbrance of any kind or whose title is questioned before
a Court or any regulatory body or such other limitations.
23) How to create a pledge on Warehouse receipts to submit them to the exchange for the
Additional Security deposit?
Members along with joint holders, if any, may deposit the WR(s) of the approved commodities with
the Exchange by marking a pledge in favour of the Exchange. Following documents are required to be
provided to the Exchange:
Warehouse Receipt (WR) of approved commodity duly pledged along with valid quality certificate.
Deed of pledge is to be executed in the format prescribed by the Exchange on a non-judicial
stamp paper of Rs.300/- or of such prescribed amount as may be applicable in the State of
execution, whichever is higher.
Certified true copy of the relevant Board Resolution in case of a corporate body.
Members and the joint holders, if any, shall give the necessary pledge instruction(s) to the
Warehouse / vault for the WR(s) to be pledged in favour of the Exchange. Once duly pledged
WR(s) are accepted, the Exchange will do the valuation of the WR(s) after adjusting the relevant
margin percentages / haircut as stipulated by the Exchange and the same shall be considered as
additional margin deposit. Refer to circular MCX/258/2005 for the format of application for pledge
of Warehouse Receipts.
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24) What is the process of release of Warehouse receipts pledged by the member in favor
of the Exchange and how to verify its status?
Members may withdraw or replace the pledged WR(s) from time to time.
Members are advised to submit a letter for withdrawal of the pledged WR(s) as per the format
specified by the Exchange from time to time.
The Exchange may consider the request for release provided
such member has no outstanding obligations / positions / dues towards the Exchange
if any, and that there is no other liability under the Rules, Bye-Laws and Business
Rules of the Exchange, and
Exchange is of the opinion that such release does not entail any risk.
Upon receipt of a request from a Member for withdrawal of WR(s), the Exchange may process
such request and issue a letter to the warehouse / vault to cancel the pledge marked in favour
of the Exchange and release such WR(s) to the said Member.
Reduced collaterals can be viewed online through eXchange web based application.
25) What are the indications given to members for renewal of their collaterals?
Members are intimated about the details of collaterals, due for renewal, vide an alert in their
obligation report 15 days prior to maturity of the Bank Guarantee/FDR/WR on a daily basis till the date
of expiration.
26) What are the reports given for information on collaterals?
Member can view their collaterals online through e-Xchange
Additionally, members are made available following files on their SFTP Folder
Collateral Files (covers as on date collaterals and inward/outward collaterals for the day), File
naming convention of the file is MCX_CD_<CM ID>_<YYYYMMDD>.csv
Collateral Certificates (Deposits / BMC) to Clearing Members on monthly basis on their SFTP/ date
folder of the last Exchange working date of the month. File naming convention of the file is
MCX_COLC_<CM ID>_<YYYYMMDD>.pdf for Deposits and MCX_COLCBA_<CM
ID>_<YYYYMMDD>.pdf for BMC.
27) When are members suspended for requirements in Collateral deposits?
If the collateral submitted for Initial Security deposit expires and no new/renewed collateral is placed
to fulfill the requirement of minimum Initial Security deposit to be maintained the member is
suspended on the next trading day.
If the collateral submitted for Base Minimum Capital expires and there is no excess additional
collateral deposit available with the Exchange to adjust the deficit, then the member is suspended on
the next trading day.
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In case of margin utilization exceeding the eligible collateral deposits by 90%, member is
automatically put under square off mode on an online basis till the utilization is regularized to 85%.
Members in square off mode can furnish additional deposits or reduce the exposure towards
regularization. Member is required to make good the EOD margin over-utilisation on a T+1 basis,
failing which con-compliance charges, as applicable, would be applicable.
28) What are different types of margins?
Initial Margin/SPAN Portfolio Margin
Extreme Loss Margin (ELM)
Additional Margin
Special Margin
Tender Period Margin
Delivery Period Margin
29) What is a closing price and how is it calculated?
At the end of a trading day, the system calculates the Closing Price of each and every contract traded
on the system. The logic for calculation of Closing Price is as follows:
Closing Price is equal to weighted average price of all trades done during the last 30 minutes of
a trading day.
If the number of trades during last 30 minutes are less than 10, then it is based on the
weighted average price of the last 10 trades executed during the day.
If the number of trades done during the day are less than 10, then it is taken as the weighted
average of all the trades executed during the day.
If no trades have been executed in a contract on a day, then the official closing price of the
previous day is taken as the official Closing Price.
Provided that in such cases, the Exchange will have the right to modify the Closing Price for the
purpose of marking to market and making the open positions closer to the market.
30) What is the procedure for change in Settlement Account?
Member, desirous of shifting settlement and client accounts from one Clearing Bank to another
Clearing Bank, shall inform MCX in writing in the format specified in the Circular No 173/2005, along-
with the following documents:
Request Letter for change of Clearing Bank.
No Objection Certificate (NOC) from the existing Clearing Bank
Letter from the new clearing bank confirming the settlement account number and the client
account number of the member.
Letter from the member intimating the New bank Accounts opened with New Clearing bank.
Both Settlement & Client A/c details needs to be mentioned, and both the A/c’s should be on
the name of MCX Settlement A/c (name of the member) and MCX Client A/c (name of the
member).
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Letter from the member stating the effective date from which he wants to shift/change the
clearing bank.
On receipt of the above said documents, MCX will accord consent and update its records and any
subsequent funds pay-in / pay-out will take place through the new settlement account of the member.
31) When & how does settlement take place?
Mark to Market or the daily settlement on MCX takes place on a T+1 (Banking day) basis. Settlement
is effected by way of issuing debit/credit instructions to the respective clearing banks of the clearing
members.
32) What is Marked-To-Market (MTM) Settlement?
MTM Settlement means that any notional and/or booked losses or profits of the members based on
member trades and outstanding positions at the end of a trading day is either debited or credited to
Member’s settlement account.
33) What if member defaults in daily MTM Loss?
In terms of Clause 19(g) of the Business Rules, pending pay-in obligation shall be blocked from the
eligible collateral deposits of the member by 10.00 AM on the pay-in date. Such reduced deposits
would then be available to the member at the start of market for exposure requirements. The amount
so blocked shall be released progressively on the confirmation of successful execution of the pending
shortages by clearing bank.
Amount outstanding at the end of the day on account of the member’s obligation shall be closed out
from the available cash deposit. Revised exposure limit shall be considered for valuation post closed
out. If in the process of closing out the shortage, the cash balance of the member falls below the
minimum security deposit requirement; such member shall be suspended from trading on the
subsequent day. Suspended members are required to make good the shortfall in the security deposit
and other pending obligations, if any, prior to his re-activation.
34) What should a member do if he has utilized 90% of his margin?
When a member utilizes 90% margins, he has the following options:
Arrange for additional margin deposit or Square off existing positions thereby reducing margin requirement to 85%.
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35) Can my Mark-to-Market Profit be added to my Margin account?
No. Mark-to-Market Profit is credited to Member’s Settlement Account. A separate Instruction is to be
submitted by the member in specified format to Increase the margin.
36) How will various charges (viz. user id charges, transaction charges etc) be collected?
The charges are reflected in the obligation report of the member.
The charges are recovered through the settlement account of the member.
Bills/Debit notes for the same are provided in the members sftp folders.
37) What are the applicable transaction charges for trade volume on MCX?
The Exchange levies & collects a transaction fee on the transactions registered with the Exchange
on monthly basis by the first week of the succeeding month. Such transaction fee is computed at
the applicable slab on total turnover for the defined groups.
The current charges and turnover slabs for Agri Commodities and Non Agri Commodities are as
follows.
Group A: Commodities (Non - Agri)
Average daily turnover Transaction fee rates
(per Rs. 1 lakh of turnover)
Upto Rs. 350 crore
Rs. 2.60
On incremental turnover above Rs. 350 crore Rs. 1.75
Group B: Commodities (Agri)
Transaction fee will be levied @Rs.1.75 per Rs.1 lakh of turnover on the total turnover of the
member.
(click the link above for group composition)
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38) How is Transaction charge calculated?
Transaction charge is calculated based on the Average daily turnover of the member for the month for
Non –Agri Commodities and on total turnover of the member for the month for Agri Commodities.
Average daily turnover will be calculated at the end of every month by way of dividing the total
turnover of the Member for the month by the total number of trading days
Accordingly the slab of TC will be decided as mentioned by the Exchange in circular from time to time
and accordingly the charge will be levied.
39) Where do member view their Turnover Certificate
Turnover Certificate is available to Trading Members on monthly basis on their SFTP/date folder of the
1st working date of the next month. File naming convention of the file is MCX_TOC_TM
ID>_<YYYY>.csv
40) When can a member access the extranet (SFTP server)?
A member can access extranet (SFTP) server anytime during a day through internet and during non-
trading period through the leased line and VSAT.
41) What end of day reports are sent to members?
Exchange provides the following reports to members at the end of the trading day on Extranet (SFTP
Server)
SFTP Common Folder
Daily Reports Product Master
Market Statistics
CP Master File
RPF File
Monthly
Report Schedule of Client Level Margin Reporting
SFTP Member Specific Folder
Trade Trade File, Position File, Turnover Certificate (Monthly)
Margin Special Margin File, Margin File, Early Pay in File
Collaterals Collateral Files ,Expiring Collateral, Collateral Certificate (Monthly), Collateral
Certificate for LNW (Monthly)
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Settlement Obligation Files, CTT File, ACBILL / Debit/Credit Notes, ACBILL Summary, JV File,
Bank File Details, EXDI File, Regulatory Fees Files
Margin
reporting
Margin File for Client Margin, Margin Shortages File, Non Compliance Margin
Shortage, Response files
In addition to the above, the obligation report also provides the members with a reminder in relation
to the expiration of the collaterals placed with the exchange 15 days prior to the expiry date of the
collateral on a daily basis till the date of expiration.
42) What is the impact on members who fail to meet their pay-in obligations in full, by the scheduled date and time?
Members are required to settle their pay-in obligations by 9.30 am on a T+1 basis. By 9.45 am, the Exchange will get confirmation about the successful, partially executed and failed instructions. In respect of partially executed/ failed/ non-confirmed instructions by 9.45 am: i. Member shall be put in suspend-square off mode for all pay-in shortages exceeding Rs. 2 Lacs in more than 2 occasions in past 30 days, till the settlement of pending pay-in obligation. ii. Pending shortage amount shall be blocked from the collateral deposits of the member with the Exchange before the start of the market. Such reduced deposits would then be available to the member at the start of market for exposure requirements. The amount so blocked shall be released progressively on the confirmation of successful execution of the pending shortages by clearing bank.
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43) What are the different types of settlement related penalty levied by the Exchange?
Compliance Nature of Violation Charges
Daily Settlement (including recovery of dues, if any)
Default in completing pay-in obligation on T+1, in full or in part,
i. First instance in last 30 days
ii. Second and third instance in the last 30 days
iii. More than three instances in the last 30 days
@0.50% of pay-in shortfall (subject
to minimum Rs.5000/- and
maximum Rs.10000/-)
@1.00% of pay-in shortfall (subject
to minimum Rs.10,000/- and
maximum Rs. 100,000/-).
Suspension (Suspend Square off)
from trading for 1 day in addition to
penalty specified in (ii) above
Margin Settlement Default in the payment of deficit margin, (margins over-utilized on trading day), before close of the banking hours on T+1 working day If the member remains in suspend-square off mode for 3 consecutive days on account of margin deficit, Exchange reserves the right to square off the open positions of the member with all the consequences of square-off to be borne by the member.
@ 1.00% on the deficit margin amount (subject to a minimum of Rs. 5000/- and maximum Rs. 1,00,000/-)
Initial Security Deposit Margin deposit is reduced below the initial security deposit, to be maintained with the MCX including due to the adjustments as mentioned in 1 above.
Charges of Rs. 5000/- and temporary deactivation / suspension till further compliance In case the default continues, in addition to the above charges, interest @ 18% per annum shall be levied during the default period, on the amount, required to build the initial security deposit.
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44) What is Exposure free deposit for MTM shortage (EFDMS)? Members who fail to meet their MTM pay-in obligations by the scheduled date and time (9:30 AM) are required to provide applicable Exposure free deposit for MTM shortage (EFDMS) 45) How EFDMS amount is determined? EFDMS Amount is assessed on each settlement date On an assessment date, a member whose MTM shortage on the scheduled date and time is in excess of Rs.2.00 lakhs and such member has defaulted in four and more occasions in past 90 calendar days including the assessment date is liable to pay EFDMS. The EFDMS amount is the highest cumulative funds shortage on account of MTM pay-in obligation during the past 30 calendar days including the assessment date 47) What is Cash EFDMS? In an event where a member for whom EFDMS is under retention period and member further fails to meet MTM pay-in obligations by the scheduled date and time, the member is required to bring additional EFDMS amount in Cash (over and above the existing EFDMS requirement assessed 48) How Cash EFDMS amount is determined? The requirement for Cash EFDMS is based on the assessed EFDMS requirement which is as follow:
Particulars Additional Cash EFDMS Requirement
First Instance 10% of the assessed EFDMS requirement subject to a minimum of Rs 1 lakh
Second Instance 15% of the assessed EFDMS requirement subject to a minimum of Rs 2 lakhs
Third Instance 25% of the assessed EFDMS requirement subject to a minimum of Rs 4 lakhs
The minimum Cash EFDMS amount shall be doubled for every further instance of failure to meet the MTM pay-in obligations by the scheduled date and time, subject to a maximum of 100% of EFDMS amount requirement
49) What is the time-period for which EFDMS & Cash EFDMS amount is retained? The period of retention of Exposure Free Deposit for Margin Shortage (EFDMS) and Cash EFDMS amount is 30 calendar days. 50) What is the time period given to members to bring EFDMS and Cash EFDMS? Exchange provides 2 clear working days’ notice to bring EFDMS and Cash EFDMS.
