Spread Margin Benefit Withdrawal | SEBI Notification |

This Circular is in continuation to the Spread Margin Benefit Notification issued by SEBI in September 2016. The Withdrawal period for Spread Margin Benefit has been altered through this SEBI Notification. Also see our previous article on Reliance Credit Rating and IPO Details of Continental Warehousing Corporation. This Notification on Spread Margin Benefit was released yesterday and was available on SEBI Portal.

spread margin benefit SEBI

Notification on Spread Margin Benefit

SEBI vide circular SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated September 01, 2016 on “Additional risk management norms for National Commodity Derivatives Exchanges” had inter-alia prescribed that margin benefit on spread positions shall be entirely withdrawn latest by the start of the tender period or Expiry-6th day, whichever is earlier.

After examination of the various representations received in this regard, it has been decided that margin benefit on spread positions shall be entirely withdrawn latest by the start of tender period or the start of the expiry day, whichever is earlier.

The exchanges are advised to bring the provisions of this circular to the notice of their members and also to disseminate the same on their website.

This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

Shashi Kumar

Market Regulation Department

shashikumarv@sebi.gov.in