W.e.f 1st august 2022 , Sebi 10 may 2022 circular comes into force…
Will there be any peak margin penalty during intraday if position amount exceeds margin amount… ?
You still get shortfall margin in intraday basis. Yesterday on my margin note I faced margin penalty from stock exchange due to zerodha RMS team squared off my position which they charged 59 leaving behind 19.5 margin shortfall but interest is too low that they don’t charged me any yet.
My understanding is that , you should not get the peak margin penalty from August 1st. From that date onwards , clearing member is requesting only one time reporting of margin. And the good thing is , margin is not going to be based on volatility anymore. So we will have a consistent margin requirement.
@MohammedFaisal, can you explain how things will change from 1st August onwards?
If the margin requirement will be based on the BOD, then that means there will be no margin increase/decrease during the day? Or that there will be margin increase/decrease during the day, just that we won’t be charged peak margin penalty for it?
Circular
@nithin, what’s the update regarding the new peak margin rules coming into effect from day after tomorrow?
Does this change anything for spread option traders like me who likes to trade in credit spreads (carry forward to next day)ie in terms of exposure margin type
What Does This Mean For You?
If you are a cash segment stock trader, then this regulation does not change the way you trade. But if you are a derivative trader (including commodities) then this regulation changes the way you trade in a big way.
For example: Let’s suppose you are trading in banknifty weekly options, and based on the beginning of day margin requirements, you need Rs 10,000 to trade in it. So, you deposit Rs 11,000 in your trading account and execute the trade. But due to market fluctuations and volatility, the margin requirement reached Rs 12,000, but you only had Rs 11,000 cash in your trading account. So, depending upon the time of snapshot (by the clearing corporation) of your position, you will be charged a short margin penalty.
But starting August 1, 2022, this penalty would not be charged, as now the beginning of the day margin requirement will be applicable throughout the day trading session. This can help you calculate your position better by deploying just enough capital to execute the trade and better manage your resources.
THIS IS REALLY GOOD FOR DERIVATIVE TRADERS.
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Have observed no intraday changes till now. Since Zerodha folks can’t be bothered here, logged to Twitter to find out how’ll one take overnight positional trades, found this reply…
@nithin, why can’t you or some other Zerodha member have the courtesy to reply? This isn’t some itsy bitsy thing, but a pretty major regulation change.
Not the first time things you guys have gone mum when things really matter…
There are a bunch of new regulations going live from today and there was confusion on if the date will get extended or not. It hasn’t, we will share a post on this topic on what all changes from today in a bit.
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@SachinSingh Zeroda has always updated on regulatory changes better than rest of the industry. others are not even close when it comes to educating traders on regulatory changes. feel bit patience on our part wouldn’t do any damage
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Expecting a reply, or an acknowledgment like ‘we will keep you posted’, isn’t asking for a whole lot, especially after 7 days…
Btw, do let me know your patience level when a regulation change occurs which might affect your livelihood, and on the day itself, there’s no clue about things…
Hi Nithin, something that might also help is the time of snapshot based on which that 3 pm something margin span is updated.
Earlier 2 pm market snapshot was probably used for the span update at 2:30 pm etc.
Hey @SachinSingh, @MayankMaheshwari
Please check the below post and if you have any queries, kindly post it on that thread.
Closing this thread to ensure that all the queries are on a single thread so that it can help more people 
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