Changes in margin requirements from 1st Sep, 2020

Trading Announcements
85

Sir , clarity on few aspects required please -

  1. If i sell shares held in my Demat in morning 10 am , can i buy back SAME stock again at 2 pm ? ( As was mentioned in clarification “other stock”) Note - No cash margin available while doing this , and all scenarios mentioned below.

  2. Ofcourse i can sell stocks on T+1 day but then again can i sell them in morning and buy again “SAME stock” b4 closing ? (I.e.BTST , but repurchased b4 closing ? (Note - in your clarification , it was “New Stocks”)

  3. Ofcourse , i can sell on T+1 day , but with the sale proceeds made, can i do few intraday trades on T+1 day (with no final delivery) ? ( Bcoz in clarification you have mentioned- you can buy stocks FOR DELIVERY"

  4. If any of above is not allowed , will Kite not allow me to do so ? OR will it allow me to do , but there will be penalty later on ?

My friend on SAMCO is having business as was b4 31 Aug, there are no changes in pre n post 1 sept, to what he could do. Absolutely no hindrance to any aspect.

86

All above 3 allowed at Zerodha.

87

Thanks for reply

So, in nutshell, talking about CASH INTRADAY/OVERNIGHT EQUITY the only difference which has happened now practically is-

  1. The gains of intraday or overnight will appear on T+2 days, (and not on same day)

If there is anything else … Request you to pls mention -

(Rather than coming with wat all is allowed post 1 Sep, ZERODHA must come up with -

“What in Practice is NOT ALLOWED NOW ??”

88

Maybe you should see the post first, you will find a table with changes.

89

with due regards sir, there lies confusion in the table / post above coz you have used word “other stocks” (This other - legally excludes original stock sold).

So plz change that that to “Any Stock”

Regards

90

Does zerodha has some changes in statement also?? The charges (DP charge) and other settlement is not showing on current day.

What stocks I sold yesterday, settlement showing on today’s date. Is it expected?

91

Hi, just clarifying, Lax will not be able to sell the 100 shares the next day right? as the settlement is T+2. If I buy today can I sell before I get the shares delivered? BTST is available?

92

Yes, BTST is available.

93

If I sell a debt fund, will I get immediate margin to buy equity?

94

When you sell Mutual Fund, the proceeds are credited to your account only after settlement is done, after that you can use it wherever you want.

95

@nithin Can zerodha Will come with margin Funding product As leverage is Gone Reduce in future
Any chance?

96

The next on our list of things to do. We first need this migration to happen to the new margin/pledging system.

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97

Hi Nithin,

Just one clarification- I had sold an option and now bought it back and received the premium credit. Can I only use the credit the same day to buy an option ? Can i not create a new position and sell an option ?

Regards,
Shaurya

98

You can only use the premium recieved to buy Options in same segment on that day, next day onwards when it is settled you can use it elsewhere.

99

(1) i had short sell (NRML) OTM nifty options . Not squared off .
my margin is still blocked on today EOD basis . today is expiry .

will i be able to use my today’s blocked margin tomorrow ?

(note : previously , before this new rule ; i was able to use the margin , the next day .
BUT , now , after this new rule ; will i able to use it the same way , as i was able to;, previously ? )

(2)

i have heard that : sebi is coming with the rule that will not gonna allow margin funding ! is it right ?

100

Please answer

101

Hey @nithin @siva-reddy

NSE has put out a circular saying that the new framework has been postponed till Sept 15.

This is for both Pledge and the trading margins, am i correct?

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102

@nithin @siva-reddy with these new margin rules, if we convert CNC position after a day or two to MIS, will we still get margin benefits or not? I just found out that other broker i.e. Upstox isn’t allowing conversion of product/order type at all! we’ve to exit the Carryforward/NRML order and enter again in MIS/INtraday order type. Can you shed some light and clarify this please?

103

It isn’t postponed, margin penalties are waived off till Sep 15th.

104

For now we will continue to allow you position conversion.

1 Like