Intraday Margin for NIFTY

General
1

@nithin @Bhuvan,

Kindly clarify how much margin one should hold to trade intraday on NIFTY from September 2020,

NRML margin 1.5 Lakh
or
MIS margin(36k) now?

Thanks
Saradhikrishnan

2

Margin requirement will be same as now until December 1st, from then onwards it will reduce in phased manner. As explained in this post Update 4th Aug 2020 - Margins for trading stocks & Intraday leverages

When is this applicable from?

This SEBI circular says that there will be a penalty if trades are allowed without sufficient VAR+ELM or 20% for stocks, and SPAN+Exposure from Dec 1st 2020 even on an intraday basis.

  • Dec 2020 to Feb 2021 - penalty if margin blocked is less than 25% of VAR+ELM ( or 20% of trade value) for stocks or SPAN+Exposure for F&O. (Max leverage of 5% or 20 times for stocks)
  • Marc 2021 to May 2021 - penalty if margin blocked less than 50% of minimum margin required. (Max leverage of 10% or 10 times for stocks)
  • June 2021 to Aug 2021 - penalty if margin blocked less than 75% of minimum margin required. (Max leverage of 15% or around 7 times for stocks)
  • From Sept 2021 - penalty if margin blocked less than 100% of minimum margin required. (Max leverage of 20% or 5 times).

The above essentially means that in a phased manner the broking industry will move to a structure where intraday leverages offered can’t exceed what is already offered by VAR+ELM (or 20%) for stocks and SPAN+Exposure for F&O by Sep 2021.

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