Margin required for shorting Nifty Option

Hi all. A few months ago margin required for selling 1 lot of Nifty option used to be less than 50K , and now it is around 90K. This has made selling Nifty option prohibitively costly and in the current low IV environment, it’s very difficult to make any decent returns.

I was wondering what brokers (like Zerodha) think about this issue and if they can do something about it.



I personally think current margins are very high but it is SEBI who can do anything about this, I think recently they have setup a sub-committee to look into margin requirements , and hopefully they will start charging margins along the global norms and consider risk instead exposure to charge margins. Brokers has no say in this.

Did you mean that brokers association is not involved in this matter with sebi and exchanges . I think higher margins means less business for both brokers and exchanges.

Brokers can only request to reconsider but final decision will be taken by SEBI.