As per the definition evolved by the exchange, in respect of transactions in specified group of securities, the volatility margin will be in addition to the normal carryforward margin. For example, if the normal carryforward margin is 15 per cent and a scrip attracts 20 per cent volatility margin, the positions carried forward would be at the rate of 35 per cent.

However, in respect of carryforward positions, the cumulative margin on a scrip on account of the volatility margin along with the incremental positions in the scrip at the end of the settlement would be subject to an upper limit of 50 per cent.

Further, if a scrip attracts volatility margin at the rate of 30 per cent and incremental carryforward margin at the rate of 30 per cent, then the total marginwould be restricted to 50 per cent.

According to the exchange's notice forwarded to the brokers, the 50 per cent cap on volatility and incremental carryforward margins in a scrip would, however, be over and above the normal forward margin. Thus if the normal carryforward margin in a scrip is 15 per cent, then a scrip would attract a maximum total carryforward margin at the rate of 65 per cent.

The exchange has also stated that the daily margin on purchase or sale in the specified group would be 15 per cent from July 20 as against the current practice of 15 per cent on purchase and 25 per cent on sales transactions.