New SEBI Margin Rules 50 percent of value in cash

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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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 …:innocent:i want it for nifty option selling

I also started doing iron condors on nifty…
Mind sharing your strategy? :slight_smile:

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