Clearing members of commodity derivatives bourses can now keep a higher quantum of bullion as collateral, with the market regulator SEBI tweaking rules in this regard. Following representations from market participants, SEBI allowed clearing members to have up to 30 per cent of their total liquid assets as commodities collateral.“Total commodities collateral for any clearing member shall not exceed 30 per cent of the total liquid assets of the clearing member, out of which non-bullion collateral shall not exceed 15 per cent of the total liquid assets of the clearing member,” the regulator said in a circular.
Clearing members will now be allowed to keep more quantum of bullion as collateral with the exchanges concerned. Earlier, clearing members were permitted to have only up to 15 per cent of their total liquid assets as collateral. The exchanges will have to arrange for timely liquidation. — PTI