Frequently Asked Questions

Even after squaring up few positions, why has my margin requirement increased?

Margin requirements are usually reduced if any position is closed/squared-off. If one side of a hedged position is not squared off fully or partially, it can result in an increase in Margin requirements for existing positions/Open Orders.


If my hedging option is open, how will I get Span margin?

Hedge benefits will not be available if there are few F&O orders for the same underlying. Partial benefits will however be available if these orders are only partially traded.


What is the reason behind that for each F&O position, the Span margin doesn’t sum up for the final margin charged for that underlying?

SPAN/Initial Margin is calculated at portfolio level. If there are multiple positions, such that only a few positions are internally hedged, the overall margin will be LESS than the sum of all positions. Spread benefit for the respective underlying will …


Where to check what kind of margin is applied?

The same will be indicated on the Open Position page under "margin type" In cases where SPAN is used as the margin type, the margin will include Initial and Exposure margins.


In NSE , does Span margin calculated on all equity F& O positions for all products?

SPAN margin does not apply to products such as Super Multiple in Futures & Options. If there is a position in the Normal category and a hedged position to the normal situation is under Super Multiple Futures/ Options, then SPAN …


Can Span margin be applied on all segment?

SPAN margin is currently calculated only for F&O positions within Equity Derivatives segment of NSE. The currency and commodity derivatives segments are not included. SPAN margin does not include positions in the Cash segment.


If I have counter position on different month on same underlying, will I get margin benefit?

Yes. Margin benefit is available for calendar spread positions. Spread margin benefits are terminated if any position expires. In such cases, the margin requirement could increase. After the expiry of the next month contract, the said benefit will be removed.


If I am holding positions for both future & Options on same underlying, will I get margin benefit?

Yes.


If I am holding positions in different underlying , do I get margin benefit?

No.


During the day, does the requirement change for Span/Initial margin?

Yes, the SPAN margins can be revised six times per day: once at the start of the day, four times during market hours, and finally at the end. Margins will be higher if volatility is high. To avoid margin calls, …


What does Exposure margin mean?

Additional to initial margin (SPAN), exposure margin is also collected. According to the most recent exchange circulars, net buy premium, delivery margin and exposure margin are mandatory.


What does SPAN margin mean?

SPAN margin is required by exchanges in F&O segment. It is calculated using a portfolio, which is a collection of options and futures positions. SPAN(r), a standard portfolio analysis of risk software, is used to calculate the margin. This product …


When can be the implementation of E-way bill be done?

The provisions of the e-way bill relating to inter-state supplies shall take effect on February 1, 2018. States can choose their own implementation dates for the e-way bill for intra-State movement.


State the benefits of E-way bill.

The e-way billing mechanism will bring the following benefits: (i) A physical interface will allow for faster movement of goods, which will eliminate state border check-posts. (ii). It will also facilitate quicker truck turnaround times and aid the logistics industry …


​Is tax included in the consignment value? Value may not be available in cases of movement that isn't by way of supply. What is the best way to value these cases?

Explanation 2 of Rule 138(1) CGST Rules 2017, the consignment value must also include the central tax, state or union territory tax, and any cess. Amount of goods shall also include customs duty due to the valuation provisions of Section …


Define Consignment Value.

The consignment value for goods shall be determined according to section 15 of CGST Act 2017, 2017. It is the value declared in an invoice, a bill or a delivery challan relating to the consignment. This document also includes the …


What is the E-way Bill common portal?

For furnishing electronic the Common GST Electronic Portal e- way bill is www.ewaybillgst.gov.in.


What do you mean by E-way Bill?

E-way bill (FORM GST EWB-01) is an electronic document that can be used by supplier, recipient, or transporter to prove movement of goods with consignment values greater than Rs. 50000/- It has two components-Part A, which includes details about GSTIN …


Where can someone access to the orders passes through NAA?

Orders passed by National Anti-profiteering Authority are available on their website http://www.naa.gov.in/news.php?cat=2 .


To justify its prices, a company may need to provide information that could be classified and might affect its business interests?

Section 11 of 2005's Right to Information Act shall apply mutatis moundis to any information that is given on a confidential basis. The DG, Anti-Profiteering might require parties who have provided confidential information to provide a summary that is not …