Is this a joke by SEBI?

[vikas1989]

@siva

May not be.

@siva here you are saying BO/CO leverage may not be reduced.

In one of reply in this post you told that BO/CO leverage will come down to 7to8 times.

Please clarify

[siva]

@vikas1989

here you are saying BO/CO leverage may not be reduced.

In one of reply in this post you told that BO/CO leverage will come down to 7to8 times.

Please clarify

Ideally in the spirit of circular it means leverages should come down, but reporting happens at end of the day so it is similar to fno for which both span and exposure is required to initiate and carry forward position but broker fund for intraday. Hence I said it is grey area and few more clarifications are awaited, once everything is clear, Nithin will write a blog explaining the circular in detail, please give it couple more days to get more clarity.

[p699]

@nithin

So yeah, the above circular will only clean up the system and will most likely make no difference to the life of any retail equity investor/trader.

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

Let me start off with first explaining why SEBI may have put in this rule in place to collect margins from customers and report to exchanges. Over the last couple of years, especially after the financial frauds at a few brokerage firms, SEBI has been working hard to fix a legacy issue of the broking industry which was a loophole that got misused by these firms. This is essentially a way to use one client’s balance (cash or margin from pledging securities) for another client, or by the brokerage…

@Bhuvan How to close this thread, since Nithin has answered this issue in another thread ?

[Bhuvan]

Shouldn’t be an issue now that you’ve posted the link at the end

[coolraj79]

can anyone confirm the exact rule now? we hold some shares in cash delivery since many months, do i have to maintain margins against that?

[siva]

As of now nothing changes, will let all know if anything changes.