How does the latest SEBI circular about margin requirements affect me?


@nithin I will pay the “margin shortfall penalty” but please dont square off my positions.


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


No, will not. Atleast at Zerodha.

Other brokers might face some pressure offering that additional intraday leverage on F&O.


Before penalty was applicable only if margin went below SPAN.


If you have been trading with us, I don’t think life will really change much for you.


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.


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 "


Would it mean that Zerodha would be charging penalty of 5% if the account balance went below span+exposure margin?

Is it also the case even if zerodha squared off the positions?

Also 5% of what value? - Total margin amount or any other different base?


5% of shortfall. Not total amount.


What is Collateral? Do you mean F&O trade?


Collateral. Means share a that u pledge for margin instead of cash.


Margin benefit one will be getting by pledging stock, can see more here.


Penalty charged by exchange, Zerodha will just pass it, and penalty is on shortfall amount only.

If position is squared off, then no penalty.






SEBI postpones regulation directing brokers to collect an upfront exposure margin from clients.


Yes, applicable from july 2nd.




THANKS SEBI :grinning:


HI @nithin When Zerodha is allow Collateral from Mutual Funds.
We are waiting from 2016 for this answer