SEBI's Circular on "Changes to the Framework to Enable Verification of Upfront Collection of Margins from Clients in Cash and Derivatives segments"

[Meher_Smaran]

@SpacemanSpiff

As an intraday trader in stock/index futures, is there any kind of penalty possible

No. There won’t be any upfront or peak margin penalty for intraday trader (Futures or options)

@SpacemanSpiff

Please try to allow a slight buffer of negative margin on existing positions - or ask/have an option for extra margins upfront - say 5-10% to mitigate all of this. I understand there can be many different cases and in some case account can go into large negative margin,

We are looking at different ways to have a solution where it’s ideal for both clients and us will keep you posted in case of any update regarding this

Working capital requirements for brokerage firms to go up from Aug 1st 2022

We want to be in a state where square-offs are instant if margins are negative. We will continue to give enough time for mark-to-market losses, but the plan is to not give for margin increase as the customer is willingly allowing the account to go negative balance. The second solution is to not allow exiting long positions that can increase margins and push the account into a debit balance. The second solution is tougher and will take some time to implement, but definitely a better solution bot…