How does the SEBI circular on collection and reporting of margins in cash segment from Jan 1st 2020 affect me?

I have tried to answer all the follow up questions on this thread here

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Lets big players fight each other for liquidity

SEBI main motto is DEMONETISATION the NSE and BSE

SEBI new margin scared by retail traders


Sebi wants retailer to buy only options like lottery tickets which hits once in a while and lose money most of the times


The way things are going, I personally believe SEBI will come up with product suitability framework in coming days, make some requirements for retails to be able to put a trade in FNO. Also SEBI should release new margin requirement rules on hedged fno positions soon which should be based on max risk.


In India the Margin requirements are already high, now this move makes it difficult for the retailers to participate, FII find better leverages. in other markets would opt out from here, leading to lower liquidity and operators can easily make money by manipulation. Just think even if Nifty moves against a retailer 100 points before he cuts his position what will be his loss? 7500! why ask for 1.1 lakh margin for intraday, even incase of black swan event 1000 points is 75000 which is a impossible, broker will cut the trade early.

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Well this is really heart breaking for small investors with brain. This clearly states that Share Market is only for Bigshots. Which we must oppose. Regulations must be for the ease of people doing business and not to Get them out of the Site. This move is ridiculous. If Sebi want to make tighten the security and transparency from brokers let them provide it directly everyday…any how every trader is getting detailed statement from the broker. This move is absurd and Idiotism or Political.

Brokers also can introduce automatic square off on the margin client have if loss making is their concern…


I do not think a product suitability framework is required as long as the minimum contract value is kept high. I wish F&O contract sizes to be very small. But even with a minimum contract value of 1L or so, that framework is not required. Only if the contract size goes lesser than that, may be a legal declaration about risk involved or a very simple certification about risks in financial markets or even a minimum deposit like US daytrading rule … is acceptable.

@nithin already mentioned elsewhere about the problem with less margin for hedged positions. Brokers may be able to change their RMS software to change the sequence of putting orders for hedged positions; so interleaved order execution does not spike the margin requirement. But how would exchange or clearing corporation validate such reduced margin? The current upfront margin scheme is flat and easy to tally anytime. Lesser margin for hedged position can only happen if exchange/clearing does the margin calculation per client. Otherwise, the same loophole exists; brokers can fudge the total margin requirement. May be I am missing something here. (Does exchange already validate per client margin before executing order?, I guess not).

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As a intraday trader, I am against this move by SEBI…
We all know that almost all retail traders participate in FnO due to leverage only, common accept it… Killing intraday leverage from FnO is like kicking all these retail traders out of the market…

And as rightly said by many, @nithin is the only broker supporting this SEBI move and looks in a hurry to implement it… We all know why… Zerod** does not offer high leverage in FnO anyways, hence this rule does not affect them much… I think they care less about retail traders interests and care more about their business, as this move will force many of thier competitors to shut down their business, as providing high leverage is the only source of income for these competitors… I think Zerod** should support other brokers and appeal against this move to SEBI, in interest of retail traders…

No any other broker has reported this SEBI move on their websites neither have they emailed to clients… I am sure they will be appealing against it to SEBI… Zerodha should support these brokers or no business from my end with Zerod**…


Check this

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I agree with you. A holier than thou approach helps no one. On every such development, the broker taking a high moral ground and saying that in the long run this will be good for the market…that will be good for the market. In the long run actually eveyone will be gone as they say. Btw, amidst all this, 5 paisa has launched titanium plan in addition to platinum plan !


I’ve written a letter to NSE.
Request all of you to also send your valid concerns to them [email protected]

You can also contact NSE grievance cell

|Investor Grievance Cell|
022 26598191
[email protected]

You can also contact sebi and provide feedback
Address :
Plot No.C4-A, ‘G’ Block
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400051, Maharashtra
Tel : +91-22-26449000 / 40459000
Fax : +91-22-26449019-22 / 40459019-22
E-mail : [email protected]
Tel : +91-22-26449950 / 40459950
Toll Free Investor Helpline: 1800 22 7575


This is like, since rape cases are increasing so let’s stop the girls from going out for jobs or studies. It will help them in the long run to become better house wives. SEBI should take strict actions against brokers so that KARVY case doesn’t happen again, instead they are throwing away retails investors from the market saying that it will be good for them in the long run. People who come to gamble they will do it anyway either in stock market or anywhere else. For them smart retail investors cannot suffer. Liquidity and volume will be very low. If liquidity is not enough then FII won’t feel like investing, already check their daily buying and selling data, which has reduced by more than 60%. This is such a bad move by SEBI. Everyone should protest it.


Hai , Recent SEBI move Is good , SEBI doesn’t want the stock market its a gamble place , SEBI want to treat stockmarket is a professional business , as trading and hedging and investing , really i agreed , even as i am a option seller . i will never take more than 10 lot in one strike because i have a fear ,because i also stopped expiray day trading , because of fear .
my friend he is trading in ASTHA broker he is getting 50x for option selling , he is writing 150 lots in one strike of bank nifty with the capital of 5 lakhs , ,3 weeks back he lost 2 lakhs + the bank nifty sudden move , if the broker is giving more leverage automatically our mindset will try to use the leverage , because if you loose capital you will never get it back from market its really hard . Minimum leverage is ok , i like zerodha in this matter , so only i stick with zerodha, because RMS is perfect , zerodha is protecting client as well as broking business , really Greed will kill as through leverage ,

SEBI is bringing good hedging margin system , this is really very good everybody can make money without fear and the loss also minimal , lets welcome the move , SEBI does in have any personal intervation with retail traders , SEBI want to protect retail as well the eco system , lets welcom the new rule and enjoy the hedged margin system

@nithin sir will u keep BO order for buying options even when …intraday leverages are gone so that traders can maintain stoploss and target discipline?

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We will.

Everyone please sign this as soon as possible

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SEBI-appointed SMAC may approve new margining system, share pledging mechanism next week

The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.

Tarun Sharma@talktotarun

A SEBI-appointed Secondary Market Advisory Committee (SMAC) may approve two important proposals next week—a new margining system and a mechanism for pledging equity shares.

"Brokers now have a consensus on margin requirements, an issue where there were differences earlier,” a source familiar with the matter told Moneycontrol.

“The risk management committee may approve the new margin structure, which is likely to be on par with those followed by stock exchanges in developed markets. After that, the SMAC will have to approve it,” the source said.

The SEBI-appointed Risk Management Review Committee (RMRC) in October had agreed on most recommendations of the sub-working group. This group had proposed lower margins for hedged positions and status-quo on unhedged derivative positions.

Have no problem with SEBI tightening leverage, infact it’s great move, As you said people take traders that are way beyond their capacity sometimes they hit big but most times they blow up, and that makes stock market (especially intraday) look place for gamblers.

This really is good news, I’ve small capital and been looking to get into options writing but current margin structure makes it impossible for me to get into it.

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