Issuing a circular on October 8, the central bank said ‘The licensed institutions must clearly disclose the terms and conditions related to margin call and recovery of margin loans through selling securities under unmet collateral at the beginning.’
BFIs are required to monitor market price of securities and notify borrowers about unmet collateral due to change in market value of shares.
While making margin call, BFIs can also add guaranteed unlisted right shares and bonus shares to be received to the number of shares kept as collateral.
