CC/EXT/130
we would like to inform you that Phase 4 Peak Margin is effective from September 01 onwards.
You might be aware of the changes happening with the Margins and leverage offered on Intraday and FnO Trading over the past few months. It’s time for the implementation of the last and 4th Phase of the Peak Margin suggested by SEBI.
Before that, if you are still rusty about Peak Margins, then find it below.
What is Peak Margin?
Until now, the Margin Reporting happened only at the end of the day for all the carry forward trades. This reporting system allowed the brokers to provide high intraday leverage to their clients. But with the new rules, Margin Reporting has to be done several times during the day as opposed to only once at the end of the day.
As per SEBI circular SEBI/HO/MRD2/DCAP/CIR/P/2020/127 dated: July 20, 2020 guidelines, the brokers have to cap the leverage up to a certain extent in a phased manner (Total 4 Phases).
Phase 4 (1st Sep 2021 Onwards):
The brokers have to collect a minimum of 100% of the position value on an upfront basis.
The initial three phases have been implemented, and now from 1st September 2021, Phase 4 of the Peak Margins will be effective.
Here’s how the margins will work in Phase 4:
- Equity: 100% on applicable VAR + ELM or 20% of trade value
- Futures and Option (writing): 100% on SPAN + Exposure margin
How will it Affect the Trader?
Alice Blue Margin changes w.e.f 1st September 2021:
| EXPOSURE PLAN OF FREEDOM (F15) | ||||
| SEGMENT | CNC / NRML | MIS – Intraday | Cover Order | Bracket Order |
|---|---|---|---|---|
| Cash | 5X | 5X | NA | UP TO 5X |
| NSE Futures | 1X | 1X | 1X | 1X |
| NSE Options | 1X | 1X ON BUY, 1X ON SELL | UP TO 1X ON BUY | NA |
| MCX | 1X | 1X | 1X | 1X |
| CDS | 1X | 1X | 1X | 1X |
General Instructions w.r.t. peak margin collections:
- If any MTM loss has occurred in any kind of intraday product, it must be cleared on a T+2 days basis. If failed to do so, there must be a short margin penalty from the respective Exchange.
- There will be Rs.4/- + GST for each on each Exchange side executed BO order.
- Except for Option Commodity and Agricultural Commodities, all the scrips/contracts are allowed for MIS (if Open interest is found).
- 75% of Holdings selling benefit (Subject to revision) allowed immediately on T day for further trade in any product in any segment.
- Margin released due to Carry Forward options can be used on the same day.
- Intraday MTM profits cannot be used on the same day.
- There will be no immediate margin release from BTST holdings square off & requires 30% upfront margin or VAR margin, whichever is higher.
Check out Aliceblue Brokerage Details:
| BROKERAGE PLAN OF FREEDOM(F15) | ||
| EXCHANGE | SEGMENTS | BROKERAGE |
|---|---|---|
| NSE, BSE | EQ Intraday | ₹15 per order or 0.05% whichever is lower |
| EQ Delivery | 0 | |
| FUT | ₹15 per order or 0.05% whichever is lower | |
| OPTION | ₹15 per order | |
| MCX | FUT | ₹15 per order or 0.05% whichever is lower |
| OPTION | ₹15 per order | |
| NSE, BSE | CURRENCY FUT | ₹15 per order or 0.05% whichever is lower |
| CURRENCY OPT | ₹15 per order | |
