Can equity holdings be used as collateral margin for commodity trading instead of cash pay in?

Much earlier, the Equity markets were regulated by SEBI and Commodity markets by Forwards Market Commission (FMC). By design, every broker had to obtain membership separately and operate it as 2 different business units.

FMC was then merged with SEBI and SEBI laid down guidelines for unification of the Equity and Commodity businesses. This change is a big because we’ve to merge two different companies, processes have to undergo changes, system related changes and since there’s dependency on RMS vendor, it’s taking an extended period of time.

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