I know that from dec 1 its 25 percent for stocks and then gradual increase to 100 percent by sep 1 2021. the thing i want to ask is it the same for fno also.like nrml margin for nifty is almost 1.5 lakh . so from dec1 2020 ,will i have to give 25 percent of 1.5 lakh or the whole 1.5 lakh?? because from past few months i thought i have to give 25 percent only from dec 1. but i was reading the margin post again by nithin kamath. and it says that for fno i have to give full span+exposure (nrml) and not just 25 percent?? pls clear.thanks in advance.
Margins are going to increase in phased manner from December 1st, not straightaway.
As explained in this post.
This SEBI circular says that there will be a penalty if trades are allowed without sufficient VAR+ELM or 20% for stocks, and SPAN+Exposure from Dec 1st 2020 even on an intraday basis.
- Dec 2020 to Feb 2021 - penalty if margin blocked is less than 25% of VAR+ELM ( or 20% of trade value) for stocks or SPAN+Exposure for F&O. (Max leverage of 5% or 20 times for stocks)
- Marc 2021 to May 2021 - penalty if margin blocked less than 50% of minimum margin required. (Max leverage of 10% or 10 times for stocks)
- June 2021 to Aug 2021 - penalty if margin blocked less than 75% of minimum margin required. (Max leverage of 15% or around 7 times for stocks)
- From Sept 2021 - penalty if margin blocked less than 100% of minimum margin required. (Max leverage of 20% or 5 times).
The above essentially means that in a phased manner the broking industry will move to a structure where intraday leverages offered can’t exceed what is already offered by VAR+ELM (or 20%) for stocks and SPAN+Exposure for F&O by Sep 2021.
You won’t need full SPAN + Exposure from December 1st, you will need 25% of SPAN + Exposure from December to February, from March to May you will need 50%, from June to August you will need 75% and from September 2021, you will need full SPAN + Exposure margin.
@ShubhS9 i guess the hedged margin remains same right ?
You will continue getting margin benefit for hedged positions as you are currently getting, there are no changes to that.