SEBI is reducing Leverage for FnO and Intraday for Equity does it affect Currency FnO too or only Equity Intraday and FnO? What about commodities margins?

F&O
1

I have some questions regarding the buzz around new margin Rules to be introduced by SEBI from Aug/Sept 2021 for Equity Intraday and Equity FnO Margin Requirements.

  1. Will these rules also affect Currency Derivative Leverages and Margins Traded on NSE BSE and MCX? If yes then how much , I mean how much money will be required to hold 1 lot of USD/INR for intraday and onernight?

  2. After these new rules are implemented will commodity FnO provide better Leverage then Equity Fno and Intraday?

  3. Which Segment will offer most attractive and high leverages post these new Leverage rules 1] Currency 2] Commodity or 3] Equity?

  4. In case currency segments continue to provide the same kind of leverages as before definitely previous equity traders will move to Currency Segment? Will this be good for the Currency Markets?

  5. Is there any chance that SEBI will reconsider this decision and not implements or revert these strict margin requirements?

2

Can check below thread, all your queries are answered there.

4

Thanks @siva sir for your reply. I have 1 doubt regarding Intraday trading[Not FNO] , will we be able to short sell shares of say a stock like say ICICI Bank 40-50 shares on a day basis like we used to earlier? Will it be possible by paying full amount for short selling, or will we get some margin for short selling? Or short selling on Intraday Non FNO will be totally out of picture?

5

You’ll be able to short sell on intraday basis just like you do now. Also, you’ll continue to get maximum 5x leverage in equity segment.