You can't now use the proceeds from selling shares for 2 days

[HarendraSingh22]

@nithin

I am hoping that this is a second-order effect of cash margin requirement which slipped through. Hopefully, gets clarified soon and clients will be allowed to use the sell proceeds immediately. !

Yeah !

[anon99108009]

India will be forever a downside country because of this kind of moves at everything. Education Reservations, controlling pvt ltd companies, I wonder how many official’s can read and understand the circulars. I’m sure they & every politician hire English professor and keep releasing circulars, wherever the possibility of exposure of country. MAKE A WALL. I see this only in our country.

[siva-reddy]

@sandrocottos

1.Does it affect positional equity futures trade? Do I get margins released immediately after exiting positions or wait till next day to get it?
2. Does it affect intraday option selling or the earlier margin release on same day regime continues so that I can take new trades same day?
3. How does it affect positional option strategies with long short legs like an iron condor? For eg if I setup an IC on friday and exit next thursday on expiry do I get the entire margin back to my account same time on exiting the positons or Do i get it next day since option buying is involved here?

Check this for fno.

[siva-reddy]

@Prakhar_Agrawal

So now can’t broker pay penalty for this and then pass on to client or there is more provisions attached to this.

No, broker can’t pass it now with these new rules, broker has to pay it.

[Prakhar_Agrawal]

Okay btw rate of penalty also changed or remained same specially on client level .

[OWL]

@magicpoison

It’s happening SOON!

Hmm…

@magicpoison

isn’t that soon?

I think it will take T+2 years

[mastertrader21]

Q : But If I keep VAR+ELM money in cash and square off at the end of the day there is no short margin penalty. Is my understanding correct

[jashanjeet]

So all this compliance and regulation for no tangible benefit to anyone? Awesome

[mastertrader21]

i.e I am shorting reliance (without having reliance in my demat) & keeping VAR+ELM in cash and cover it back before the day close will it attract Short margin penalty ?

[Harsh_08]

@nithin @siva-reddy Is there meeting planned between SEBI and brokers or this is the final decision.

[mastertrader21]

What about Short Selling in Cash without having shares in my account (Reliance stocks) with 50K cash money in my account can Short sell and cover it back without penealty margin

[nithin]

@mastertrader21

Q : But If I keep VAR+ELM money in cash and square off at the end of the day there is no short margin penalty. Is my understanding correct

Yes, you are right.

[nithin]

@mastertrader21

i.e I am shorting reliance (without having reliance in my demat) & keeping VAR+ELM in cash and cover it back before the day close will it attract Short margin penalty ?

No, it won’t. As long as you have the margins, no issue.

[nithin]

@Harsh_08

@nithin @siva Is there meeting planned between SEBI and brokers or this is the final decision.

All brokers are representing to the exchanges. This FAQ was issued by exchanges .

[nithin]

@mastertrader21

What about Short Selling in Cash without having shares in my account (Reliance stocks) with 50K cash money in my account can Short sell and cover it back without penealty margin

Yes, my man. As long as you have sufficient VAR+ELM, you can take any position.

[Harsh_08]

Got it. Thanks for the reply. Hopefully the logic will prevail.

[Rohan_K]

Not sure what was the reasoning behind this decision have they stated this anywhere? Is it even legal to hold clients fund for 2 days even when they have sold the shares.

[VenuMadhav]

@Tauqeer_Ahmad

Can I sell stocks in my holding and then buy it back in the same session (Intraday) with Profit or loss whatever may be the case.

As far as margin reporting is concerned, Exchange is asking for margins based on EOD positions. In this case, there’s no position hence the EOD margin file will only have the MTM loss as margin. However, once peak margin reporting starts, this could change.

[digvijay_singh]

Example - Capital is 50k and I Bought reliance worth 1lakh with BO (Equity) and VAR+ELM of 22k is blocked. Now while my Reliance Position is open now I buy Bata Too worth 1Lakh and VAR+ELM of 22k is again blocked and now I have 6k margin left from the 50k Capital. I can square off postion as they were BO and now I can again use 50k as margin for intraday trades ?

[RISHITA_GADA]

@nithin got some confusion, please clarify.

For example I have bought 1 lot of SBI futures and hedged same with 1lot of SBI pe Positional and sell both next day. Margin utilised 35k all n all. Got a profit of say 3k so question is-

1. Will I be able to use 35k used margin the same day when I square of my existing SBI position ?

2. And if I am able to use it then for futures buying / selling and options buying / selling both or just futures buying / selling or just options buying / selling ?

3. What if I hold naked futures buying position Positionally and book the same next day and assume capital blocked in this 2L and I square off my this position next day so will I be able to used this amount of 2L to create fresh position same day when I square off my existing Position ?