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Market regulator Securities and Exchange Board of India (SEBI) has mandated all trading members to collect upfront margin from its clients for trades executed in stock exchanges and the peak margin obligation is being implemented in phased manner according to SEBI’s circular.
Already three phases have been implemented and the fourth phase, which is also the final phase, will be implemented starting from September 1, 2021. In the fourth and final phase, trading members are mandated to collect 100% upfront margin for Intraday trades (Margin Intraday Square Off / Cover Order / Bracket Order) from clients.
So, based on the circular, we will provide limits as given below to all our clients from September 1, 2021 (Wednesday).
| SEGMENT | PRODUCT | LEVERAGE |
| Equity | CNC (Delivery) | 1 TIME |
| Equity | NRML (Delivery) | 2 TIMES |
| Equity | MTF (Delivery) | 2.5 TIMES |
| Equity | MIS (Intraday) | 5 TIMES |
| Equity | Cover Order (Intraday) | 5 TIMES |
| Equity | Bracket Order (Intraday) | 5 TIMES |
| F&O/CD/COMMODITY | NRML | 100% OF SPAN + ELM |
| F&O/CD/COMMODITY | MIS (Intraday) / CO / BO | 100% OF SPAN + ELM |
| F&O/CD/COMMODITY | OPTION BUYING | 100 % OF PREMIUM |
| F&O/CD/COMMODITY | OPTION SELLING- NRML | 100% OF SPAN + ELM |
| F&O/CD/COMMODITY | OPTION SELLING – MIS/BO/CO | 100% OF SPAN + ELM |
SPAN – Span Margin; ELM – Extreme Loss Margin
The above mentioned leverages are calculated as mentioned in the SEBI circular and the leverages are subject to change based on risk parameters defined by the company and also on new regulations in the future .
So, kindly make sure you have sufficient margins before you start trading.
To read SEBI’s original circular, click here