Another SEBI rule has come up

Just saw this -

No one else has posted this, so I guess I am the first.

Someone please go through this and explain what exactly is happening. I went through it several times but couldn’t understand it completely.

There are two things to this

  1. Looks like margin required to trade F&O is going to go up slightly more again.

  2. I just updated my answer to this post

There was a very old rule from SEBI which allowed brokers to either collect MTM losses the same day or the next day. Most brokers to manage risk would do it on the same day and square off positions which didn’t have enough money before market close. We recently had an arbitration order which went against us for doing so, and the client took refuge in this old rule from SEBI that said we could have waited till next day. It is practically impossible to run a broking business if we let clients hold positions overnight without sufficient margins (after the MTM losses). SEBI has now fixed this bit by saying losses have to be collected the same day.


Any rough estimate as to how much will this increase be? The circular talks about the SPAN calculations but its not too clear how much the margins will increase in % terms.

(Currently, we are have about 18-20% Total margin on stock futures on average.)


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Requesting the Zerodha team to help clarify this.

Will it be possible to know how much this increase in margin is going to be?

Hey @anp

Check out this post.

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SEBI come out with new rule. Under the new rules, filing of a fresh offer document is required in case of any increase or decrease in the estimated issue size by more than 20 per cent.

Sebi has been behaving like Angrezo ke zamane ke jailor.