SEBI's New Margin Rule and the Key Highlights for Investors

After a meeting with brokers, depositories and clearing corporations on Monday, the capital market regulator Securities and Exchange Board of India (SEBI) decided to go ahead with its new margin pledge rules from September 1, 2020.

1) Buying and selling of shares will Require Upfront margin from now onwards .

Eg:

If you want to buy Reliance shares worth 1 lakh you must have 20k rs in your account as cash and rest money to be paid within 2 days...

If you want to sell 1lakh worth of Reliance shares from your holdings for that scenario also you must have min 20k rs in your account, Failing which penalties will be levied.

Selling from holding will also require Upfront margin in cash (Var+ELM)

You can keep extra cash / or can pledge other holdings for the stipulated margin required.

2) Shares bought today cannot be sold Tomorrow.

For example: You bought Reliance On monday..You can only sell those shares after recieving the delivery of shares. T+2 you can sell in Wednesday

You can only sell the shares after you receive in Your DP/only after receiving the delivery of shares.

3) Shares Sold Today from delivery...the funds cannot be used for new trades today.. You can use the funds for new trades when you get pay out

You sold 10,000 worth of Reliance's shares today. You cannot use this money to buy fresh shares of other companies. This 10000 you can use the money when you get payout.

No changes In options and Futures Rules for Now Till further Notice.

All the changes are Made By SEBI .......brokers are only following the new rules.

Note: check all rules with your broker and trade safely.