How will intraday leverages being reduced effect traders, brokers, & exchanges?

[nithin]

@MEDI_MANOJ

Then why the more margin is taken than the total risk of option hedge strategy like iron condor, spread
In spread the total Loss was 5000 and total profit was 3000 and you collect margin around 30000 why?

Check this, we have spoken about this multiple times in the past.

New margin framework is here - to benefit hedged positions

16th May update The changes in the margin framework will be effective from June 1st, 2020. Check this NSE circular. This has been a long time coming — margin reduction for positions that hedge each other. SEBI has just put out the new margin framework for cash and F&O (Equity and currency) segments. Check this. Here is how margin requirements will change Cash market No change in margins. Check below for Group 1 stocks. Current New Change Group 1 VAR 7.5% 9% ELM 5% 3.50% …

I know some of you might have expected even lesser margin requirements for hedged positions, but as I have mentioned earlier - there are execution risks involved as well (client exiting the long options portion of the strategy and hence ending up holding the short positions with unlimited risk with very little margin).