- This will help to strengthen the risk management framework.
- The pre-expiry margins will be applicable to certain commodities which are under the Alternate Risk Management Framework (ARMF).
- The SEBI will be introducing pre-expiry margins on cash-settled contracts from 1st April 2021. Under this, the commodities are deemed to be susceptible to possible near zero or negative price.
- The pre-expiry margins will be imposed during the last 5 trading days which will be prior to the expiry date so that they will raise by 5% daily.
- This will result in encouraging a significant reduction of open interest as the contract comes near to the expiry date.
- Static Part:
- HQ of SEBI: Mumbai
- Chairman of SEBI: Ajay Tyagi
Question:
Q.1 Which of the following organisation announced to introduce pre-expiry margin to certain commodities of ARMF, in order to curb negative price scenarios?
a. RBI
b. SEBI
c. IRDAI
d. NABARD
a. RBI
b. SEBI
c. IRDAI
d. NABARD
