5.12.3 Viewing Participant Margin Details

You can view margin details maintained for participants of the drawdown contract, using the Participant Margin Maintenance screen. To view this screen, you have to click the Part Margin tab.

All details captured in the Margin Maintenance screen are defaulted here.

For a given effective date and currency, you can view the margin maintained for the borrowers and participants.

To add a new participant, click Add Row and click Default Components.

The system displays all participants linked to the tranche. You can specify the margin rate applicable for the required participants from the required effective date.

Note that you can maintain margin rates for participants only for margin components of the main interest components of the Tranche’s Drawdown products.

Place your cursor on a participant and click the Delete Row button to delete that participant.

Click Ok button to save the details and exit the screen.

The system ensures that the total margin rate of all the participants is the same as the borrower margin rate for the effective date for which margin rate is captured/ amended. It also checks the rates for each participant, margin component, currency, effective date and amount slab combination. You should have computed the required margin rates prior to capturing or amending the margin rate using this screen. If the validation for margin rates fails, the system displays an error message and aborts the transaction. You should correct the margin rates and then proceed.

If base rate is negative or borrower margin rate is negative then system do not allow user to maintain participant margin. If user has captured positive margin rate for borrower and participant then system do not allow user to amend the margin rate from positive to negative.

The system displays the below error:

Borrower margin is lesser than 0, hence participant margin cannot be captured.