I don’t think anything is actionable for Zerodha here. It is up to the clearing corporation, exchanges, and SEBI to define a framework for this, which the brokers can follow. Zerodha cannot on its own decide to charge lower margin because the user holds the underlying in a call sell.
Yes, this is absolutely correct. There is no role of Zerodha here. It’s about clearing corporation. So, you can not expect any flag or etc from Zerodha.
Not true, Shoonya doesn’t require maintaining cash margin for covered call if POA is linked and there are sufficient shares in demat.
I think the limitations at Zerodha and other brokers are due to how their RMS is structured and the additional regulatory complexity, not due to a regulatory obstacle. Zerodha FAQ admits as much:
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@nithin I am not sure if it is SEBI mandated OR difficult to do changes to Zerodha RMS… could you please let us know your thoughts?
Do check if they’re pledging shares held in demat, and then providing margins against such collateral for your short option position.
Cross margining benefit offered by the CCs are only available till the time that the settlement is completed. For example - If you buy Reliance equity on Monday, and have RIL short future position on the same day, you are entitled to get cross margin benefit. Once the Reliance have been credited to your demat, the cross margining benefit goes away and you’ll need to have full margins for your Reliance short future position. In essence, cross margining benefit is only for one day and is not available if shares are held in demat account
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