The 100 per cent peak margin will be implemented in the stock markets from September 1

(Commercial Representative) MUMBAI: Brokers will now collect 100 per cent peak margin in the cash and derivatives segment from customers in the stock markets from September 1, 2021. It may be mentioned here that as per the circular issued by SEBI / Exchange, penalty provisions have been imposed from December 1, 2020 for reducing or not consolidating peak margin and NSE had decided to implement it in phases from the circular dated September 4, 2020.

In pursuance of regulatory changes made by SEBI regarding collection and reporting of peak margins from customers in the cash and derivatives segment in the stock markets, the broking houses have informed the customers about 100% peak margin effective September 1, 2021.

As per the provision of 100% peak margin effective from 1st September 2021

(1) The required peak margin will be debited from the customer's bank account on the trading day itself. Which will be released on the second day of trading or after adjusting the margin, if there is any fund, the limit will be given on the next trading day.

(3) If any position is held in the cash or derivatives segment by keeping the funds on hold, the unused funds will not be released during the day (previously 3% of the unused amount was allowed to be released) and this amount will be released at the end of the day.

(3) The requirement of upfront margin in day trading / intra-day product is presently 3%, which has been increased to 20% of the minimum trade value.

(3) For a new-fresh sale in a CNC product and for a purchase order in the same security (i.e. square of order) on the same day, only up to 50% of the sale amount can be received (which was earlier limited to 50% of the sale amount). . If the customer wants to buy more outstanding shares - quantity or more - he will have to put more funds on hold.

(2) If any new sale is to be made in a CNC product and a purchase order is to be placed in another security on the same day, only up to 50% of the sale amount will be allowed from now on, which was earlier 100% of the sale amount.