What does this SEBI rule mean?

[ShubhS9]

Explained here:

50:50 collateral rule to be more strictly enforced from now onwards?

Hi @SachinSingh, Regulations mandate that 50% of the margin can come from collateral margin and the remaining 50% has to be in cash. If cash margin is not available, it can be funded by the broker’s funds. At Zerodha, if you don’t have the 50% cash requirement, we fund the same and charge a nominal interest of 0.05% per day. What has changed recently with this SEBI circular(Annexure 3 Page 16) is that brokers are required to allocate cash and collateral margins on a client-by-client basis inst…