SEBI's New Margin Rule and the Key Highlights for Investors
After a meeting with brokers, depositories and clearing corporations on Monday, the capital market regulator Securities and Exchange Board of India (SEBI) decided to go ahead with its new margin pledge rules from September 1, 2020.To get more news about WikiFX, you can visit wikifx official website.
1) Buying and selling of shares will Require Upfront margin from now onwards .
Eg:
If you want to buy Reliance shares worth 1 lakh you must have 20k rs
in your account as cash and rest money to be paid within 2 days...
If you want to sell 1lakh worth of Reliance shares from your holdings
for that scenario also you must have min 20k rs in your account, Failing
which penalties will be levied.
Selling from holding will also require Upfront margin in cash (Var+ELM)
You can keep extra cash / or can pledge other holdings for the stipulated margin required.
2) Shares bought today cannot be sold Tomorrow.
For example: You bought Reliance On monday..You can only sell those
shares after recieving the delivery of shares. T+2 you can sell in
Wednesday
You can only sell the shares after you receive in Your DP/only after receiving the delivery of shares.
3) Shares Sold Today from delivery...the funds cannot be used for new
trades today.. You can use the funds for new trades when you get pay
out
You sold 10,000 worth of Reliance's shares today. You cannot
use this money to buy fresh shares of other companies. This 10000 you
can use the money when you get payout.
The Wall