NSE says ad hoc margins is a routine step to check risks
Kolkata: The National Stock Exchange has clarified that the ad hoc margins, which were clamped on select brokers last Thursday by the NSE Clearing Corporation, was a routine risk containment step. It is estimated that around 50 brokers, who had built up large outstanding positions, were called upon to pay the margin upfront before the start of the trading session on last Friday. Brokers were quoted as saying that the additional margin calls in the derivatives segment put pressure on the brokers, who sold shares significantly in the cash segment to garner funds and to an extent, caused a decline in the indices.

In a first official response to the issue, an NSE official said the step by the NSE clearing corporation is to be seen as a part of the on-going risk containment measures. "It is a routine and taken from time to time. There are various reasons for taking such a step by the Clearing Corporation and it would be inappropriate to conclude that market risks had reached an alarming proportion," the official observed. "The norms for payment and collection of margins are clearly laid out and there is hardly any room for misinterpretation," the official also added.
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