Can you share more details on this new SEBI rule which will come into effect on Feb 2022
Is it on top of existing 100% Margin rule ?
Does this imply that essentially for FNO - the margin would be 50% of overall lot value ?
There is no change in margin requirements. It’s, Minimum 50 % of margin should come from cash or cash underlying.
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No.
As per SEBI minimum 50% margin has to come in cash and remaining 50% from collateral. Nothing changes for you as a Zerodha user as for overnight positions, we already block margins in 50:50 Cash - Collateral ratio.
You can check out more details on this here: 50:50 collateral rule to be more strictly enforced from now onwards? - #2 by MohammedFaisal
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Can you please let me know that if this rule applies to Intraday also?
Let’s say if 70% of my margin comes from pledging and 30% from cash for my Intraday trades then wil i be put penalty or can’t trade at all?
Only for overnight positions of FnO need 50% cash margins.
For intraday you can use 100% collateral margin.
Wow that’s a great relief…i can now invest them and use them as collateral …thanks for the quick response. .this had me worried for long time …
But you cannot use the collateral to buy options.
Only intraday, Futures positions & option writing.
Yes thanks …
i want it for nifty option selling
I also started doing iron condors on nifty…
Mind sharing your strategy? 
This is applicable only for overnight positions. For intraday you can use 100% collateral margin, there won’t be any interest charged.
@ShubhS9 can you push to clearing corporation to treat ultrashort term and corporate bod as cash equivalent , if its possible …
then this 50% cash requirement its will be implemented to all broker, because lot of broker does in need to maintain these rule