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

Upstox still higher margins are available and Kotak sec has sent a message SMS early morning their supermultiple(BO/CO orders with high margin) orders will not be available today to adjust lower margin as per new sebi guidelines… But now afternoon received a message supermultiple orders are available now…I checked the margin still higher margin for intraday supermultiple orders are given…
Hope zerodha clears the air about all these intraday margins especially whether BO/CO will be continued?

This won’t happen as margins will be asked upfront, mis/co/bo won’t get extra leverages if this circular goes live.

According to sebi these intraday leverages should be stopped for fno, we are waiting for few more clarifications.BO/CO will continue but with nrml leverages if this circular stays.

Hi @siva sir you didn’t got my point,
Zerodha got a good RMS team to handle risk of client default in margin and do other online brokers have, so there was no default happening then and now from RMS team then what made SEBI introduce VAR+ELM margin system in stocks across all the products (mis,bo,co) they want to implement ?
In co product type leverage was given higher then normal
Because compulsary sl m was placed so there was no risk default by clients to brokers,
Does SEBI know about those products types (mis,bo,co) there difference?
They want VAR+ELM margins in stocks across all products types from brokers
destroying small retail traders!

Isn’t MIS on Futures already stopped as Zerodha Margin Calculator has dropped the MIS column?

It is just taken out from website for now, will update soon on this circular.

SEBI is a stupid regulator in india , maths are only well worked for devoleped countries , not india sir ji,
Risk based margin calculation system are following in all developed countries , but in india SEBI cannot understand the basic maths on risk in system,
i think SEBI will kill Broker business and make market to be illiquid
. the knowledge of indian system you want to see how SEBI is regulating the market

This SEBI is useless for all , @siva let SEBI to look the developed country risk based margin system


Margin needed in India and USA example

Nifty 1 lot sell @ 12000 - Rs 20 PE
nifty 1 lot buy @ 11800 -RS 12 PE
total premium collected -RS 8 - Maximum risk in this trade is 6000

For example , the margin blocked in india is 1.1 Lakhs - the maximum risk in this trade is 6000
the same trade margin blocked in USA is 6000 only
this is the diffrence between Gentle man AND Stupid Man
This is showing india is not a country to do EASY OF DOING BUSINESS
as an indian i am trying to see a way to trade in USA market , how foreigners will trade in indian market :thinking::thinking:

Zerodha kind of big broker cannot rise the issue in margin to SEBI every body will loose our business


Absolutly margin in india is way to high then a well developed countries😥,

From past 12 months many circular were release by SEBI to brokers about margins,
If this keep going its not the small retail traders vanish from market, brokers to have to shut down (discount brokers)
Because brokers are running from retail traders brokerages
If brokers did not stop SEBI they gonna loose much of clients and there brokerages…

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Why dont we do something collectively for this, SEBI recently came out with a plan of reducing margin on hedged trades.Lets see

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Let us know if you find a way to trade US derivatives from India legally. I’ve put off consulting a business lawyer so far thinking “what’s the need." Sure the price movement here sucks compared to US, but at least there was leverage… Now that these guys are killing off literally the only good thing about the Indian market, it’s time to explore ways to trade the US market…

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I think intraday leverage upfront deposit only for cash market , SEBI did in tell about F&O , any way zerodha is taking upfront margin ,
zerodha wrongly posted and circulating in z-connect there is no more MIS , its absolutely wrong information from zeodha , i asked sharekhan they are telling MIS product are available , only cash market intraday we need some upfront margin

In Z-connect nitin posted there is no more MIS product in the market, nrml margin we will collect for f&O , i think this is business competion is going on with brokers, already zerodha is giving intraday leverage low , SAMCO ,5PAISA with these broker i spoke today , nothing change for option writing , 5 paisa have plantinum plan they are giving enough leverage to option writer , recent circular from SEBI is only for Cash market , if zerodha is reducing we will move to 5 paisa or samco

Even if there is no leverage we will go to sharekhan , there we can pledge all mutual fund , ultrashortterm bond fund , fixed deposit every thing for better return then liquid fund


Did you read the faq released by sebi. It clearly mentions you need nrml margin for fno segment. I don’t know about Sharekhan or 5paisa but once the order is out it has to be implemented by brokers. Every broker will fall in line with time.

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is this apply to MCX too ?

even its true , all the problems are created by brokers only , the KARVY issue those kind of fraud SEBI to try to close most of the broking business very soon , brokers itself pouring a sand in his business , not only the broker affected even retail we are affecting , all the problems are started because of KARVY idiot


Even though all this is happening due to Karvy, I’m shocked at how immature Sebi’s being in its reaction. This is going waaay overboard. You don’t just kill off leveraged trading altogether because one brokerage firm indulged in malpractice! :expressionless:


Most probably, i will quit trading after this move by sebi as I traded with 2 lakh capital and it was easy for me to trade in 5-6 scrips but now it’s not possible. If one trade goes wrong have to wait for it to square off and then take other trade or otherwise i need 7-8 lakh rupees which is not possible.

I don’t like to let my frustrations on writing in social media…but watching all this from yesterday i have to say this…
As far i have seen in TV or in you tube,news Nitin is the only one supporting this move from SEBI…May be it is cutting down competition who are giving margin excess…Too much margin might be bad but now what SEBIhas done is over killing…I like NItin and Zerodha a lot and watch all his interviews and use to think that he is very knowledgeable and championing retail investors cause in the market but to see him on TV and supporting this move is very frustrating…
He is in SEBI board for advise or in some position to advise/consult, i request him to reason with SEBI against this move…
I think we need to support the brokers who are voicing against this move even though margin will be same across all brokers in future but for the cause we should support others…


There is a lot of time and effort that goes into pushing regulators to do things that can help retail. Some of them go through, for example the STT rationalization for exercised options, reduced margins for hedged positions (coming up soon), uniform stamp duty, etc. Some of them don’t. The issue this time has been the Karvy episode. SEBI is removing everything which was regulatory grey that the brokerage firms were doing.

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Does the option writing intraday margin will be reduced?