Notice Board

Revised Intraday Leverages W.E.F 1st June 2021 On Account Of Peak Margin – Phase 3 Implementation

By 31/05/2021 No Comments

As we are aware, previously SEBI had announced a new Margin Policy Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segments. It was said that the policy would be implemented in 4 phases starting from 1st December 2020. Phase 1 was implemented on 1st December 2020 and Phase 2 was implemented on 1st March 2021. As we speak w.e.f 1st June 2021, Phase 3 is being Implemented and it will result in a further reduction in the Intraday Leverage. Under Phase 3 implementation, brokerages have to collect a minimum of 75% margins on the prescribed limit for Intraday Trading, and failing to do so will attract peak margin penalties. You can read the circular dated 21st July 2020 here – SEBI/HO/MRD2/DCAP/CIR/P/2020/127

The following changes have been made with regards to the Phase 3 implementation of the said circular:

Revised Leverages for Intraday, Cover Order, and Bracket Order.

Instrument Leverage
Equity
Intraday 1. 1.33x of VAR+ELM leverage for F&O Stocks
2. 1.33x of VAR+ELM for Non-F&O Stocks (Nifty 500)
3. Maximum leverage of upto 6.6x
BO/CO 1. For Nifty 500
2. 1.33x of VAR+ELM
3. Maximum leverage of upto 6.6x
Futures
Index Futures
Intraday 1.33x of SPAN+Exposure
BO/CO 1.33x of SPAN+Exposure
Stock Futures
Intraday 1.33x of SPAN+Exposure
BO/CO 1.33x of SPAN+Exposure
Commodity Futures
Intraday 1.33x of SPAN+Exposure
BO/CO 1.33x of SPAN+Exposure
Crude Oil BO/CO 1.33x of SPAN+Exposure
Currency Futures
Intraday 1.33x of SPAN+Exposure
BO/CO 1.33x of SPAN+Exposure
Option Selling
Index Options
Intraday 1.33x of SPAN+Exposure
BO/CO 1.33x of SPAN+Exposure
Stock/Commodity Options
Intraday 1.33x of SPAN+Exposure

For more details, you can visit our Margin Calculator.

 

Important Points to be Noted:

  • Only 80% of the CNC sale proceeds will be available to the clients during the day and the remaining 20% will be blocked for meeting the peak margin requirements.
  • All the Realized Profits will be blocked until settlement (i.e., Clients will be not able to use the realized profit for taking new positions, until the settlement). Settlement happens in T+1 day for F&O and  T+2 days for Equity.
  • There is no margin provided for Buying Options and clients are required to maintain the entire margin required, in cash.
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