#SEBI GUIDELINES FOR MARGINS

As per new SEBI rules, buying and selling of shares will require upfront margin.

Eg: If you want to buy shares worth ₹1 lakh then you must have ₹20K margin cash in your trading account & the balance of ₹80K to be paid within 2 days.

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If you want to sell ₹1 lakh worth of shares from your holdings then too you must have minimum ₹20K margin cash in your account, failing which penalties will be levied.

You can keep extra cash / or can pledge your other holdings for the stipulated margin required.

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Buy Today Sell Tomorrow (BTST) closed.

Shares bought today cannot be sold tomorrow.

Eg: If you bought shares on Monday then you can sell those shares only after recieving the delivery of shares in your demat account i.e. you can sell on T+2 day, Wednesday.

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If shares are sold today, funds will not be available immediately to buy new shares. Funds will be available only after settlement / or next day.

Eg: If you sold shares from your holdings today, you cannot use the funds today to buy new shares.

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No change of rules in Futures & Options (F&O) segment as of now until notified by SEBI.

The new rules will be applicable from tomorrow i.e. 1st of September 2020.

Brokers will work towards implementing the same with immediate effect.

Plan you trades accordingly

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Here's the official circular issued by SEBI

Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segments.

Date: 20-Jul-2020
No.: SEBI/HO/MRD2/DCAP/CIR/P/2020/127

https://www.sebi.gov.in/legal/circulars/jul-2020/framework-to-enable-verification-of-upfront-collection-of-margins-from-clients-in-cash-and-derivatives-segments_47101.html

Effect on Intraday Trading:

As per the SEBI circular, 20% of trade value has to be collected upfront before a trade, even for an intraday trade.

This essentially means that the maximum intraday leverage that can be provided for stocks is 20% of trade value or 5 times.