Valued Sharekhan Customer,

We would like to bring an important communication to your attention.

This is to inform you that pursuant to SEBI circular CIR/HO/MIRSD/DOP/CIR/P/2019/139, dated Nov 19, 2019, guidelines for the collection and reporting of margins by Trading Member (TM) / Clearing Member (CM) in the Cash Segment have been revised.

Important revisions (non-exhaustive) include:

• Upfront Margins: Clients are expected to provide VaR margins and Extreme Loss Margins (ELM) on an upfront basis, including for intra-day trades.
• Revised MTM Guidelines: Sharekhan will collect T-day MTM loss by T+2 day in approved forms. These losses cannot be set off against MTM profits of T+1 day.

For NRI clients:

• In case of NRI clients undertaking Buy transactions under PIS on repatriation basis, funds received from the NRI’s PIS bank account (NRE) before the respective pay-in will be considered as the collection of upfront margin.
• In case of NRI clients undertaking Sell transactions under PIS on repatriation basis, securities received before the respective pay-in shall be considered as the collection of upfront margin.
• Margin clarification is awaited from SEBI for transactions executed in NRO trading accounts.

Penalties for non-compliance will be applicable from trades executed on or after April 1, 2020, as under:

Short collection for each client/TM/CP	Penalty percentage
(< Rs 1 lakh) and (< 10% of applicable margin)	0.50%
(≥ Rs 1 lakh) or (≥ 10% of applicable margin)	1.00%

Furthermore, in cases where there is short/non-collection of margins for more than 3 consecutive days or for more than 5 days in a month, a penalty of 5% of the shortfall amount shall be levied for each day of continued shortfall beyond the 3rd consecutive day or after the 5th day in the month, as the case may be. You are requested to go through all the revised SEBI guidelines/clarifications by clicking here and also refer to the FAQs issued by NSE by clicking here.

By continuing to avail services of the Cash Segment with Sharekhan, it would be understood that you have agreed to the revised guidelines.

In case of queries, feel free to contact your Branch/Relationship Manager.

Warm Regards,
Team Sharekhan