What is Additional Surveillance Margin (ASM) for F&O Derivatives segment?
ASM is an additional margin levied by Clearing Corporations (NSCCL/ICCL) as part of enhanced risk management and surveillance measures to safeguard against extreme market volatility.
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How can I add additional margin?
Additional margin can be added by depositing funds, pledging eligible securities, or reducing open positions to ensure that the available margin meets the minimum margin requirement for your trades.
What happens if fail to maintain margin?
When trading through the Margin Trading Facility (MTF) or Futures & Options (F&O) segment, investors are required to maintain the prescribed margin at all times. If the available margin falls below the required level, the investor may be required to ...
Is there any margin on selling shares in Cash Segment?
Yes, margin is applicable for both buy and sell transactions in the Cash Segment. As you are aware, settlement of transactions in the Cash Segment is on T+1 day basis, accordingly the upfront margin of the trades done on T’day should also be ...
Is ASM different from regular margin?
Yes, ASM is over and above the margins already prescribed by the Exchange/Clearing Corporation (SPAN + Exposure + other margins).
How do specific corporate actions impact F&O?
A) Dividends Dividends are payments made by a company to its shareholders. • If the dividend is less than 2% of the stock price → No adjustment • If the dividend is 2% or more (extraordinary dividend) → Strike price and futures base price may be ...