Change in Margin effective from Dec 01, 2020
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Change in Margin effective from Dec 01, 2020

The new peak margin regime will go live from tomorrow, December 1, 2020. Here is a summary of the changes you’ll need to keep in mind:

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 its 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 upto a certain extent in a phased manner (Total 4 Phases).

Phase 1 (1st Dec 2020 to 28th Feb 2020):
The brokers have to collect a minimum of 25% of the position value on an upfront basis.

Here’s how the margins will work in Phase 1:

  • For equities, 25% on VAR + ELM or 20% of the trade value (whichever is lower).
  • For futures and options selling, 25% on the SPAN + exposure margin.

Phase 2 (1st Mar 2021 to 31st May 2021):
The brokers have to collect a minimum of 50% of the position value on an upfront basis.
Phase 3 (1st Jun 2021 to 31st Aug 2021):
The brokers have to collect a minimum of 75% of the position value on an upfront basis.
Phase 4 (1st Sep 2021 onwards):
The brokers have to collect a minimum of 100% of the position value on an upfront basis.
Aliceblue Margin changes w.e.f 1st December 2020:

TRADITIONL PLAN
SEGMENTCNC / NRMLMIS – IntradayCover OrderBracket Order
Cash3X10XNAUP TO 20X
NSE Futures1X4X4X4X
NSE Index Options1X1X ON BUY, 4X ON SELLUP TO 4X ON BUYNA
MCX1X4X4X4X
CDS1X4XNANA

 

FREEDOM 20 PLAN
SEGMENTCNC / NRMLMIS – IntradayCover OrderBracket Order
Cash3X10XNAUP TO 20X
NSE Futures1X4X4X4X
NSE Index Options1X1X ON BUY, 4X ON SELLUP TO 2X ON BUYNA
MCX1X4X4X4X
CDS1X4XNANA

General Instructions w.r.t. peak margin collections:

  1. 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.
  2. There will be 4/- + GST for each on each Exchange side executed BO order.
  3. MCX Base Metals, GOLDGUINEA, GOLDPETAL, CPO are not allowed in MIS products.
  4. NSE Options BUY in CO will be limited to few strike prices based on SGX NIFTY opening price of T day and direct SELL is not allowed in CO due to market risk.
  5. 50% of Holdings selling benefit is allowed immediately on T day for further trade in any product in any segment apart from Options Fresh BUY.
  6. Margin released due to Carry Forward options cannot be used on the same day.
  7. Intraday MTM profits cannot be used on the same day.
  8. There will be no immediate margin release from BTST holdings square off.
  9. In NSE Stock Options, MIS is not allowed and only NRML is allowed.
  10. In MCX Options, no MIS is allowed & only NRML is allowed.
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