What are the various margins applicable to the borrower on T-Day in SLB at Jainam?

What are the various margins applicable to the borrower on T-Day in SLB at Jainam?

In the case of the borrower, the total of the following amounts will be taken as margin from the borrower:

  1. 100% of closing price of previous day,
  2. VaR margins and
  3. Extreme Loss Margins (ELM) 

RELATED FACTS:

  • VaR and ELM will be applicable as the same in the cash market for buying or selling a security. Daily MTM on the margin is done to ensure no borrower default risk.
  • Lending fees will also be collected from the borrower on the transaction date.
  • At Jainam, no margin is collected from the lender on T day.