CURRENT AFFAIRS

Detailed explanation-1: -SEBI had setup an Advisory Committee on Derivatives headed by Prof. J. R Varma to inter alia review the recommendation of Dr. L.C Gupta Committee in the present context.

Detailed explanation-2: -Earlier, clients were able to trade with the entire margin received on pledging their securities. However, with the new margin rule, w.e.f. May 2, 2022, clients can now use only 50% of their margin against securities, while the balance 50% margin must be available in cash(bank) with broker to initiate trade.

Detailed explanation-3: -NSE Clearing collects initial margin up-front for all the open positions of a CM based on the margins computed by NSE Clearing-SPAN’.

Detailed explanation-4: -Broadly, RBI is empowered to regulate the interest rate derivatives, foreign currency derivatives and credit derivatives.

Detailed explanation-5: -The Securities and Exchange Board of India (Sebi) has relaxed the norms for calculating peak margins by brokers. In a circular, the market regulator has allowed margins to be fixed at the beginning of the day (BoD), doing away with the earlier requirement changing them frequently on an intra-day basis.