Please check out our latest Z-connect post to know in detail about the changes that will take place from August 1st, 2022
TL;DR :There won’t be any peak margin penalty for clients. The onus will now be on brokers which leads to working capital requirement going up massively.
In case, Client’s account becomes negative, for example : While exiting an hedged position, then the brokerage charges for orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20. This does not change anything for the vast majority of the customers. To ensure that this scenario doesn’t apply, simply ensure sufficient margin as always when taking trades.
Hi @Meher_Smaran how will the Rs 40 brokerage be reported in our eod report?
Will all brokering charges go under 1 header or will be able to see two headers? Any way of capturing the time snapshot also of when we get charged for Rs 40.
If after the 2:50 pm update, our account goes into negative and it takes around 10-15 minutes to close the position, so for that, will there be any interest charges from Zerodha?
The article states that the onus is on broker so my guess is no but during that short time, it’s essentially the broker funding the client’s account, so does the broker expect any interest on that?
I do understand there’ll be higher brokerage for exiting position during that time when account is negative, want to know whether will be any other charges apart from that…
Eventually, the entire industry will have to increase the brokerage rates with all these new regulations. Unlike the US, Indian brokers don’t have other ways to generate income. I’d written this sometime back
It will all go under 1 header. It isn’t possible to show the time snapshot on the contract note. But you could potentially create your own position based on all the orders placed during the day, to figure when the margins were negative.
I am talking about credit spreads dont understand need of exposure margin(you introduced addtional brokerage of 20 rs if one leg of hedged position is squaredoff) there i think there is a need to lobby for it like what ANMI did for peak margin do something for us also
Upstox has started withholding sale proceeds of delivery stocks. Today I sold a stock from demat in my upstox a/c. They didn’t give any money. Earlier I got 80% instantly and rest 20% next day. This inspite of fact that upstox knows that security actually exists in my demat and there is zero risk.
Starting Aug 1st, there was a regulatory change that says no penalty if intraday margins go up. All penalty is calculated based on the beginning of the day margins. Until this was done, this was an impossible regulation for any brokerage firm to comply with. Now that this issue is fixed, we will not pass any more upfront margin or peak margin penalties to the customer. But penalties for MTM (mark to market) shortfall, delivery margin, additional margin, etc. will continue to be passed to the customer (regulations allow for this to be passed).