# How does the latest SEBI circular about margin requirements affect me?
**URL:** https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381
**Category:** Announcements
**Created:** [May 3, 2018, 6:38am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381 "2018-05-03T06:38:52Z")
**Posts on this page:** 20
**Page:** 2
### Author:  [@p699](https://tradingqna.com/u/p699)
#### Post date: [May 31, 2018, 9:26am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/23 "2018-05-31T09:26:04Z")
@nithin I will pay the “margin shortfall penalty” but please dont square off my positions.
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### Author:  [@ArsenSimao](https://tradingqna.com/u/ArsenSimao)
#### Post date: [May 31, 2018, 10:15am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/24 "2018-05-31T10:15:06Z")
what happens to those who buy call and put options
do they have to maintain the margin requirements as per sebi
can someone enlighten me, may be Nitin himself and that would be great
thanks
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [May 31, 2018, 10:35am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/25 "2018-05-31T10:35:15Z")
> [@vivek\_manot](#):
>
> Thus this effect indraday margin by any means?
No, will not. Atleast at Zerodha.
Other brokers might face some pressure offering that additional intraday leverage on F&O.
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [May 31, 2018, 10:36am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/26 "2018-05-31T10:36:58Z")
> [@RahulN](#):
>
> Starting tomorrow, you have to maintain full margin, i.e., SPAN + Exposure, to carry forward F&O positions. Not maintaining adequate funds could result in a system square off or an exchange margin penalty. Read more here.
>
> So before this how much we had to maintain?
Before penalty was applicable only if margin went below SPAN.
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [May 31, 2018, 10:38am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/27 "2018-05-31T10:38:03Z")
> [@p699](#):
>
> @nithin I will pay the “margin shortfall penalty” but please dont square off my positions.
If you have been trading with us, I don’t think life will really change much for you.
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [May 31, 2018, 10:38am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/28 "2018-05-31T10:38:50Z")
> [@ArsenSimao](#):
>
> what happens to those who buy call and put options
>
> do they have to maintain the margin requirements as per sebi
>
> can someone enlighten me, may be Nitin himself and that would be great
>
> thanks
When you buy options, you pay the entire premium using money in your account. There is no concept of margin. Nothing changes for buy option clients.
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### Author:  [@TIMEFRAME](https://tradingqna.com/u/TIMEFRAME)
#### Post date: [May 31, 2018, 10:50am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/29 "2018-05-31T10:50:26Z")
Margin requirements does not affect call and put option buyers , **it affects option sellers , stocks & Index Future buyers & sellers ,** Its better to buy "Stock options ( put & call )which are not in Physical settlement list "
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### Author:  [@p699](https://tradingqna.com/u/p699)
#### Post date: [May 31, 2018, 11:19am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/31 "2018-05-31T11:19:49Z")
5% of shortfall. Not total amount.
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### Author:  [@yogi.agni](https://tradingqna.com/u/yogi.agni)
#### Post date: [May 31, 2018, 12:19pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/32 "2018-05-31T12:19:37Z")
> [@nithin](#):
>
> cash + collateral
What is Collateral? Do you mean F&O trade?
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### Author:  [@Som\_E](https://tradingqna.com/u/Som_E)
#### Post date: [May 31, 2018, 12:37pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/33 "2018-05-31T12:37:53Z")
Collateral. Means share a that u pledge for margin instead of cash.
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### Author:  [@siva-reddy](https://tradingqna.com/u/siva-reddy)
#### Post date: [May 31, 2018, 12:38pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/34 "2018-05-31T12:38:26Z")
> [@yogi.agni](#):
>
> What is Collateral
Margin benefit one will be getting by pledging stock, can see more [here](https://support.zerodha.com/category/q-backoffice/portfolio/articles/how-do-i-pledge-my-shares-to-get-collateral-margin).
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### Author:  [@siva-reddy](https://tradingqna.com/u/siva-reddy)
#### Post date: [May 31, 2018, 12:40pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/35 "2018-05-31T12:40:00Z")
> [@Vagaram\_Chowdhary](#):
>
> Zerodha would be charging penalty of 5% if the account balance went below span+exposure margin?
Penalty charged by exchange, Zerodha will just pass it, and penalty is on shortfall amount only.
> [@Vagaram\_Chowdhary](#):
>
> Is it also the case even if zerodha squared off the positions?
If position is squared off, then no penalty.
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### Author:  [@ArsenSimao](https://tradingqna.com/u/ArsenSimao)
#### Post date: [May 31, 2018, 12:57pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/36 "2018-05-31T12:57:28Z")
Thankc
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### Author:  [@ArsenSimao](https://tradingqna.com/u/ArsenSimao)
#### Post date: [May 31, 2018, 12:58pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/37 "2018-05-31T12:58:53Z")
Thanks
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### Author:  [@Som\_E](https://tradingqna.com/u/Som_E)
#### Post date: [May 31, 2018, 3:25pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/38 "2018-05-31T15:25:22Z")
SEBI postpones regulation directing brokers to collect an upfront exposure margin from clients. [https://t.co/lnhei3eiHX](https://t.co/lnhei3eiHX)
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### Author:  [@siva-reddy](https://tradingqna.com/u/siva-reddy)
#### Post date: [May 31, 2018, 3:39pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/39 "2018-05-31T15:39:14Z")
> [@Som\_E](#):
>
> SEBI postpones regulation directing brokers to collect an upfront exposure margin from clients.
Yes, applicable from july 2nd.
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [May 31, 2018, 4:44pm UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/40 "2018-05-31T16:44:04Z")
> [@siva-reddy](#):
>
> Yes, applicable from july 2nd.
[https://www.nseindia.com/content/circulars/CMPT37887.pdf](https://www.nseindia.com/content/circulars/CMPT37887.pdf)
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### Author:  [@p699](https://tradingqna.com/u/p699)
#### Post date: [June 1, 2018, 4:06am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/41 "2018-06-01T04:06:02Z")
> [@Som\_E](#):
>
> SEBI postpones regulation directing brokers to collect an upfront exposure margin from clients.
THANKS SEBI 😀
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### Author:  [@Rahul\_Sharma1](https://tradingqna.com/u/Rahul_Sharma1)
#### Post date: [June 1, 2018, 5:48am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/42 "2018-06-01T05:48:29Z")
HI @nithin When Zerodha is allow Collateral from Mutual Funds.
We are waiting from 2016 for this answer
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### Author:  [@nithin](https://tradingqna.com/u/nithin)
#### Post date: [June 1, 2018, 8:02am UTC](https://tradingqna.com/t/how-does-the-latest-sebi-circular-about-margin-requirements-affect-me/38381/43 "2018-06-01T08:02:55Z")
> [@Rahul\_Sharma1](#):
>
> HI @nithin When Zerodha is allow Collateral from Mutual Funds.
>
> We are waiting from 2016 for this answer
Mutual funds are a little tricky, especially with funds which have regular dividends (we get the dividend, which has to be passed to you, accounting is a pain), dividend in terms of new units, funds with lock in, etc… We will do it, but this will maybe take more time.
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