Modified Carry Forward System
Summary
SEBI has modified the conditions of the Modified Carry Forward System following a review by the Prof. J. R. Varma Committee. The overall carry forward limit per broker is enhanced from Rs. 20 crores to Rs. 40 crores with specific margin requirements for the incremental amount. The maximum period for carrying forward transactions, previously limited to 90 days, has been removed.
Text
The overall carry forward limit has been enhanced from the existing limit of Rs.20 crores to Rs.40 crores per brokers.
The margin up to the present limit of Rs.20 crores will remain at the existing prescribed level and the incremental position will attract a additional margin of 5%.
Further, there will be scrips-wise broker-wise position limit, which presently will be Rs.5 crores.
The present maximum limit of 90 days for carry forward of transactions has been removed.
Source: SecMarx — Modified Carry Forward System. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.