Borrowers may do an early repayment of securities in NSE Clearing’s repayment account any time during the tenure of the borrowing period for availing of margin benefits.

Lend transaction- Reverse leg

The Lender would not be charged any margins for the reverse leg.

Early Recall Transaction

In case of early recall transaction the transacted lending fee for the recall transaction is levied as margin till the pay-in of lending fee the next day.

Early Repayment Transaction

There are no margins levied for early repayment transactions

Value at Risk Margin (VaR Margin)

VaR margin rate as applicable to the security in the capital market segment are applicable in the SLBS.

The VaR margin is collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction.

The VaR margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position.

VaR margin rate for each security is disseminated to the Participants through the Extranet and on the website of the Exchange.

The VaR margin so collected is released on completion of pay-in of the respective settlement.

Extreme Loss Margin

Extreme Loss margin (ELM) rate as applicable to the security in the capital market segment is applicable in the SLBS.

The Extreme Loss margin is collected on an upfront basis by adjusting against the collateral of the Participant at the time of transaction.

The Extreme Loss margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position.

The Extreme Loss margin so collected is released on completion of pay-in of the respective settlement.

Mark to Market Margin

Mark to market loss is calculated by marking each transaction in security to the closing price of the security at the end of day in the capital market segment. In case the security has not been transacted on a particular day in the capital market segment, the latest available closing price at the NSE is considered as the closing price

The mark to market margin (MTM) is collected from the Participant before the start of the SLBS session of the next day.

The MTM margin is collected /adjusted from/against the collateral deposited by the Participant.

The MTM margin is collected on the gross open position of the Participant. The gross open position for this purpose would mean the gross of all positions across all the clients of a Participant including its proprietary position. For this purpose, the position of a client would be netted across its various securities and the positions of all the clients of a Participant would be grossed.

There would be no netting off of the positions and set off against MTM profits across two settlements However, for computation of MTM profits/losses for the day, netting or setoff against MTM profits would be permitted.

The MTM margin so collected is released on completion of pay-in of the settlement.

Exemption from margins in case of Early Pay-in

In cases where early pay-in of securities is made prior to the securities pay-in, such positions for which early pay-in (EPI) of securities is made are exempt from margins.