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CIRCULAR ON CROSS MARGIN IN COMMODITY INDEX FUTURES AND ITS UNDERLYING CONSTITUENT FUTURES OR ITS VARIANTS (CIRCULAR DATED - 29.06.2021)
Updated on:29th Jun, 2021
SEBI has prescribed norms, inter-alia, for providing margin benefit on spread positions in commodity futures contracts, vide various circulars. In order to improve the efficiency of the use of the margin capital by market participants, it has been decided to introduce cross margin benefit between Commodity Index futures and futures of its underlying constituents or its variants. This shall reduce the cost of trading and may lead to enhanced liquidity in both the Commodity index futures and its underlying constituent futures or its variants.
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