Margin Requirements

Margin requirements applicable for transactions on Debt Securities

A margin requirement is computed by the CDS pursuant to trades executed on the Spot Board in respect of each Participant, taking into consideration the settlement risk arising from such transactions carried out by the Participant pending inter participant settlement.

Such margin requirement will be communicated by the CDS to the Participant end of the applicable Trade Day.

The margin requirement will be computed in accordance with a methodology determined by the Board of Directors from time to time.

The margin requirement will be applicable for a Participant in the event the aggregate value of the purchases executed by such participant on the Spot Board on a given market day equals or exceeds Rupees ten (10) Million.

Margin requirement will not be computed for trades executed on the Tom Board.