Notice Board

Revised Intraday Leverages W.E.F 1st September 2021 On Account Of Peak Margin – Phase 4 Implementation

By 31/08/2021 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, Phase 2 on 1st March 2021 & Phase 3 was Implemented on 1st June 2021. As we speak w.e.f 1st September 2021, the Phase 4 is being implemented and it will result in a further reduction in the Intraday Leverage. Under Phase 4 implementation, brokerages have to collect a minimum of 100% 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 4 implementation of the said circular:

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

Instrument

Leverage

Equity

 

Intraday

1. 100% of VAR+ELM leverage for F&O Stocks

 

2. 100% of VAR+ELM for Non-F&O Stocks (Nifty 500)

 

3. Minimum leverage of 5x and Maximum upto VAR+ELM

 

 

BO/CO

1. For Nifty 500

 

2. 100% of VAR+ELM

 

3. Minimum leverage of 5x and Maximum upto VAR+ELM

 

 

Futures

 

Index Futures

 

Intraday

100% of SPAN+Exposure

BO/CO

100% of SPAN+Exposure

 

 

Stock Futures

 

Intraday

100% of SPAN+Exposure

BO/CO

100% of SPAN+Exposure

 

 

Commodity Futures

 

Intraday

100% of SPAN+Exposure

BO/CO

100% of SPAN+Exposure

Crude Oil BO/CO

100% of SPAN+Exposure

 

 

Currency Futures

 

Intraday

100% of SPAN+Exposure

BO/CO

100% of SPAN+Exposure

 

 

Option Selling

 

Index Options

 

Intraday

100% of  SPAN+Exposure

BO/CO

100% of SPAN+Exposure

 

 

Stock/Commodity Options

 

Intraday

100% 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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