How is the margining structure at the Exchange for the Retail Debt Market?
• Margining – Mark to Market : The positions in the Retail Debt segment are marked to market until settlement and mark to market margin on net outstanding position of the members is collected on all open net positions. The mark to market margin is calculated based on the prices derived from the Zero Coupon Yield Curve (ZCYC). This margin is to be collected on the T+1 day along with the margin on the outstanding positions in cash segment. • Margin exemption to Institutional business: Institutional business (i.e., business done by members on behalf of Indian Financial Institutions, Foreign Institutional Investors, Scheduled Commercial Banks, Mutual Funds registered with SEBI) would be exempted from margin, as is applicable in the case of transactions in the equity segment, as the institutions are required under the relevant regulations to transact only on the basis of giving and taking delivery. The members would, however, be required to mark client type ‘FI’ at the time of order entry f
