What scenarios are considered for ASM calculation?

What scenarios are considered for ASM calculation?

ASM is calculated based on the following stress scenarios:
  • 20% market decline scenario:
    Loss arising due to a potential 20% fall in value of securities.
  • 17.74% market rise scenario:
    Loss arising due to an upward movement, considering available margins and eligible hedge positions.

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    • Are hedged positions considered for ASM calculation?

      Yes. Eligible hedged positions based on depository-reported holdings are considered while computing ASM under the upward movement scenario.

    • Why is ASM being charged?

      ASM is implemented as a precautionary measure based on stress scenarios defined by SEBI, Exchanges, and Clearing Corporations to ensure adequate risk coverage in volatile market conditions.

    • Will Delayed Payment Charges (DPC) be applicable on ASM?

      Yes, Any shortfall arising due to ASM will be considered while calculating ledger balance and DPC will be applicable. No waiver of DPC will be granted for ASM-related shortfalls.

    • Is ASM applicable permanently?

      ASM applicability depends on regulatory framework and market conditions. It may be modified or withdrawn as per instructions from Exchanges/Clearing Corporations.

    • 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).