Intraday trading coming to an end!

General
1

With the new SEBI rules, will intraday trading come to an end?
Will the broker companies exists after sept 2021?

2

Which rule you referring to?

3

New Margin Trading Rule by SEBI

These rules will put an end to intraday trading and turnover generated out of it. The brokers have been instructed to collect VaR (value at risk) and ELM (extreme loss margin) upfront from their clients. These rules will be implemented in a phased manner starting in December 2020.

https://tradebrains.in/margin-trading-new-sebi-rules/#:~:text=New%20Margin%20Trading%20Rule%20by%20SEBI,-The%20Securities%20and&text=These%20rules%20will%20put%20an,manner%20starting%20in%20December%202020.

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4

Welcome back on Earth 01 brother. Hope your journey from galaxy 097846382 was joyful with SpaceX-Jio.
This is 2020 december on Earth.
Just to update you with latest happening from Earth. here is an update from our media partner “Kal Tak”.

  1. Ambani purchased Space-X.
  2. The order you are referring was passed whole year back.
  3. It got implemented 18 days back.
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5

These has been discussed well in other threads. Seems you are not clear about it.

Let’s not worry on things that hasn’t happened.

6

There is no restriction on Intraday trading, SEBI has only increased minimum margin requirements which lowers the leverage but leverage will still be there is Equity segment (maximum 5 times).

Effect of this on broking industry has been addressed in this post: Peak margin requirements from Dec 1st 2020 & its effects

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7

And other segments?

8

From September 2021 there will be no intraday leverage in F&O segment (Equity, Currency, Commodity), brokers are mandated to collect full SPAN + Exposure margin. The above post explains everything in detail.

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9

In simple words, we have same margin requirement in fno be it nrml or mis… For equity mis is 5 times nrml.

10

Right, from September 2021, MIS and NRML margin will be same in F&O and leverage in Equity (cash segment), will be capped to maximum 5 times.

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11

But why leverage is stopped in many stocks. Has sebi also mentioned list for which maximum leverage of 5 times could be provided.

12

bro… intraday trading is going nowhere… sebi has only reduced leverage not banned intraday trading…

in a way this is good move… rather than people’s capital going bust in one or two trades, they might survive a little longer to learn something meaningful and protect their money.

2 Likes
13

which stocks… haven’t seen leverage stopping in any stocks…

14

Try to place Mis order on Arvind on Monday on kite.

15

I dont think anything will happen, except every broker in the industry has to offer same leverage to clients. Like uniformization.