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

Hey @TradeB2B

Apologies if I missed replying to any message. :slight_smile:

  • Iceberg and Timed orders
  • Family Account management in console
  • Sticky Order Window
  • Various Nudges (creating awareness against penny stocks and other corp actions)
  • Varsity Videos
  • Voting on shareholder proposals

are some of the new features/ new activities some of which are industry first :slight_smile:

Capital requirement will be up for all the brokers (not just Zerodha) due to the regulatory changes which are mentioned in detail in the above Z-connect article.

Rest assured, Our focus has always been on how to make trading and Investing comfortable and better for not just our clients but for all traders.

Keep sharing your valuable inputs, Looking forward to interacting more with you @TradeB2B :slight_smile:

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Lets work togather and force sebi to remove exposure margin for hedged trade (even the report made by RM committe states we have too high margin) Make SEBI wake up from slumber and make sure they help INDIA achieve her dream of becoming a 5 trillion dollar economy :grinning:

does this mean we will be able to trade all strikes in nifty and bank nifty?

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@nithin @Meher_Smaran Thanks!
Appreciate the hard work done by the Zerodha team for ensuring the stability and security of the platform, as for anyone trading for their livelihood above both is a must!

Meanwhile, if possible please do add instant unpledging to that list too, it will greatly help in dealing with the small-cap names.

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I deliberately took this trade to ask this question.

Closed all position except one short position & it is showing short-margin penalty of around 9.5 L

So according to new rules I won’t be charged penalty if I let it expire?

If my understanding is wrong please correct it.

@Prakashsingh @ShubhS9 @nithin @Meher_Smaran

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It is showing short margin and not short margin penalty. If you held this position when a peak margin snapshot was taken by CC, there will be a penalty. As Zerodha we don’t pass on this penalty anymore. But looks like this is another broker, I don’t know if they have stopped passing the penalty or not.

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I use Zerodha & that Screenshot was from SENSIBULL :slightly_smiling_face:
& thanks got it

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What is the expected hit that Zerodha is expected to have by not passing on margin penalty ? I’m assuming it would definitely be huge. any other interesting datapoints you can share for us wrt margin penalties ?

:see_no_evil: damn, I didn’t realize that sensibull positions page has become full cool. @Sensibull :wink:

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What is CC & snapshot is taken at random time once a day right ?

Don’t ask me how much, it is quite a bit. :slight_smile: But it has reduced from Aug 1st when intraday peak margin penalty is considered based on the beginning of the day margins and not updated margins during the day.

We are trying hard to ensure that negative margin positions get squared off, and we can avoid the penalty. But if @dtyxg could hold this position, clearly it isn’t enough. :slight_smile:

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CC = clearing corporation. It is taken at five random times during the day. If there is a negative balance at that point, there is a penalty.

Clearing corporation. Randomly 5 times

:exploding_head: I wonder how much the other brokers in the industry are affected by this. Definitely a tough pill for brokers to swallow for sure

image

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Hey waiting for FINNIFTY

image

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Hi, will penalties borne before Aug 1st (for example, in June & July) be refunded to us, or does this only applu for Aug 1 onwards?

Also this will apply to margin short falls on commodity accounts too right, not just NFO?

The rules are applicable from Aug 1st. No refund of earlier penalties.

@Sensibull : It would be great if Finnifty is introduce in option chain . Also iceberg order feature or sticky order like window feature where orders can be placed with more than freeze quantity or repeat order can be placed in one go.

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Yeah ; I can’t trade without SENSIBULL, so waiting for them.

@nithin

Already messaged Abid,hopefully soon