What is the new margin rules from June 2021?

W.e.f 1st June 2021, there will be an increase in PEAK margin from the existing 50\% to 75\% of the total margin. Accordingly, intraday leverage provided for Equity Cash and F&O Intraday will be changed. This is an important update regarding Peak Margin which is going to be increased w.e.f. 01.06.

What are new margin rules?

The new rules mandate to collect minimum margins on leverage-based trade upfront four times every session as against earlier practice of collecting it at the end of the day. The first leg of this peak margin rule was implemented in December 2020 with 25\% upfront margin, which was later increased to 50 & 75\%.

What are the new margin rules from September 2021?

Margin requirement in cash segment Now before September 1, 2021, as per SEBI’s peak margin norms, brokers used to collect 75 percent of the 20 percent as margin – which was Rs 315. That 75 percent has now become 100 percent from September 1, 2021. This means the entire Rs 420 must be collected by the brokers.

What is 75\% peak margin rule?

Currently, the upfront margin required is 75 per cent of the total margin. In other words, if a trader wants to buy a Nifty contract worth Rs 10 lakh, the margin at 20 per cent would be around Rs 2 lakh. Until August 30, the upfront margin was only Rs 1.75 lakh.

What is the new margin rules from September 2020?

SEBI New Margin Rules: Market regulator Securities and Exchange Board of India’s (SEBI) new margin rules will come into effect from Wednesday (September 1). Under the new peak margin rule, traders will be required to give 100 per cent margin upfront for their trades.

What is pledge margin?

Margin Pledge is a process in which users can pledge their stocks to the broker in return for a collateral margin that can be utilized for trading. The user can pledge his or her existing stocks to the broker.