Description

ICCL will levy additional exposure margin of 15% in equity derivatives on securities where top 10 clients account for more than 20% of MWPL, effective May 4, 2026 after expiry of April 2026 contracts.

Summary

ICCL (Indian Clearing Corporation Ltd.) is levying an additional exposure margin of 15% in the equity derivatives segment on securities where the top 10 clients collectively account for more than 20% of the Market Wide Position Limit (MWPL). This is a continuation of the framework established via BSE Notice dated March 18, 2019. The specific securities subject to this margin are listed in the attached Annexure and the measure becomes effective from May 4, 2026.

Key Points

  • Additional exposure margin of 15% will be levied on identified securities in the equity derivatives segment
  • Applicable where top 10 clients account for more than 20% of MWPL
  • Where additional surveillance margin is also applicable, the higher of the two margins will be levied
  • Securities are identified based on 3-month rolling data and reviewed monthly
  • Specific securities are listed in the Annexure (AnnexureAdditionalExposureMarginonSecuritiesunderMWPL30042026)

Regulatory Changes

No new regulatory framework introduced. This is a monthly review and update under the existing Additional Exposure Margin on Securities under MWPL framework established on March 18, 2019. The list of securities subject to the margin has been updated for the current review cycle.

Compliance Requirements

  • Trading members and their clients holding or taking positions in the securities listed in the Annexure must ensure sufficient margins are available
  • For securities with both additional exposure margin and additional surveillance margin applicable, the higher margin rate must be maintained
  • Members should refer to the Annexure for the complete list of affected securities

Important Dates

  • Notice Date: April 28, 2026
  • Effective Date: May 4, 2026 (immediately after expiry of April 2026 contracts)

Impact Assessment

Traders and members with positions in the identified securities will face higher margin requirements from May 4, 2026. This may lead to increased capital requirements for affected positions. The measure targets securities with high concentration risk (top 10 clients holding >20% of MWPL), aimed at reducing systemic risk in the derivatives market. Market participants should review the Annexure and adjust their margin funding accordingly before the April 2026 contract expiry.

Impact Justification

Periodic monthly review of additional exposure margin under MWPL framework affecting specific securities in equity derivatives; impacts traders with concentrated positions but is a routine regulatory measure.