Why did the exchanges publish a clarification on no additional intraday leverage?

During volatile days , these leverage brokers wont give any leverage.
As far as i know Wisdom , astha and MO didnt give any leverage on friday.

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@siva @nithin is there any possibility to ban short selling in India?

if this happens ::: there are intraday traders who do short sell cash equity . What would happen to them ?

The issue in this business is that there could be any news, any day, any time that could move markets really fast and really quickly. And that one big day is enough to cause losses to brokerages that can potentially bring their business down.

But yeah, that is I guess a business call for everyone to make. I had posted this recently

Short selling isn’t allowed in India right? Any short selling is allowed only for intraday, overnight not allowed - which is what is banned everywhere.

If you are talking about F&O, if you ban people who short, then there is no F&O business at all. :slight_smile:

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My question was in context of South Korea banning short selling from tomm till 6 months, no idea what exactly it is

In many countries you can short sell (sell securities without holding them). Even in India you can technically do it by first borrowing stock on SLB (Stock lending and borrowing platform), but that platform hardly has any volumes.

Most shorting in India happens on F&O, it is isn’t like this in other countries.

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So that means many countries were offering SLB (shortselling without holding securities with them) just like futures? Which was ban temporary?
So there was no effect of intraday shortselling In many countries right? The only effect was SLB right?

No concept of intraday shortselling there.

So it means they only short stocks with SLB method?
It is clear There is no FNO Business without shortsellers…

Sort of.

There options are very popular, no concept of single stock futures. Futures are on indices. Even though couple of exchanges offer single stock futures but they are not at all popular,meager volumes.

So there is no concept of single stock futures,
To carryforward stocks how do they do it? Does brokers provide any margin funding facility??

Yeah.They need to open margin account.

Thank you @siva
So there are Two types of accounts with brokers,
Margin account and cash account
With Margin account brokers will Fund
With Cash account our own cash settles?

Correct, also in cash account no leverage is given.

@siva, You guys first forget about your support for banning leverage, and concentrate on how to make your platform stable. You know what happened yesterday right.
I would suggest you guys to not focus on how to close other brokers businesses, rather invest your time and effort to improve your platform.

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@siva
@nithin
When one should expect clearity on intraday leverage …??

With the current situation, I think everything is postponed for a bit.

May 1st we can expect margin reduction for hedged positions ? or even that too will be postponed

Nithin
What are chances that SEBI will stop this intraday leverage facility ( F&O)
According to Money control article some brokers opposed it , and SEBI was ready for this to continue if brokers fund their own money for leverage