NSE has introduced a T+0 (Today) settlement scheme for its members allowing them to pay the margin on the next day of trading, at 8:30 am, before the market opens, according to reports.
Reports stated that it will save them around 20-25% on scale-up margin requirements in case mark-to-market (MTM) gets triggered.
MTM is triggered during a sharp fall in the price of a security when the initial margin collected by the exchange is not sufficient to make good the crash in price, says report.
NSE reported that if margin payment is done before the market opening, such a scale-up margin might not be required.
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