Can anyone tell me what will be margin that SEBI will collect when I try to buy ESL shares today? Currently it is quoting 1.25/share on BSE. ESL is placed in ASM and as per BSE notice on Friday - Margins shall be levied at the rate of 100% for this stock.
The question I am asking as Zerodha usually block buying in shares where additional margin is being asked to deposit with SEBI. But today I am able to place orders to buy shares and does not know if I buy shares today, how much money will be blocked?
not very sure but my guess in case of ASM you must have 100 % margin with broker to purchase shares means the purchase amount should be there with broker before placing order and not as per t plus 2 where you can make payment on second day of purchase or even early morning of third day .
in case of GSM (many broker do not entertain deal ) you must pay 100 to 200 % additional security deposit beside your purchase cost
please correct if above not good.
Their wording is very misleading, you will NOT be required to pay extra. If you buy shares worth 10k, only the 10k will be blocked from your demat, not 20k as the ASM circular language suggests confusingly
I think the margin they mean is from Broker to Exchange. So Broker need to keep margin on Day T, and not on Day T+2.
So as the end user, no impact on us. Lot of people have bought Vakrangee, Visesh Info, etc in ASM and found they didnt pay anything extra
GSM has 6 stages with elaborate mechanism where once placed it is very difficult for share to come out of it. It usually takes minimum of 3 months to infinite time (the company closes down and promoters run away with all money - nothing left to shareholders). ASM has been newly introduced measure by SEBI with no clear direction and has 2 category. One is like T2T and other requires 100% margin. The link for GSM : https://www.bseindia.com/annexure.htm . For ASM there is no link.
To be safe buy small qty to confirm how much margin is blocked, then continue with remaining
Well I called Zerodha and for ESL they said I will have to pay additional 100% margin as per ASM notice of Friday.
Great suggestion, I will try to buy small quantity and wait till tomorrow. Dont want to end up blocking a lot for no reason and misleading circulars by sebi.
ESL isn’t trading in the GSM category. Check this post for more on the margins blocked for GSM scrips.
ESL is in ASM and not GSM. Both are different.
the notice do not talk about any ADDITIONAL margin but only 100 % margin . it means client must have funds with broker while placing the order .
Please check BSE circular: https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20180511-26
YES . ASM only affect BTST traders whereby without paying anything you buy a share and sell next day .in ASM you may not be able to do so .
Why wait till tomorrow, just check now how much margin blocked in your demat