InvestorQ : As India gets into a new margining system, should brokers get more leeway with clients?
Priyanka N made post

As India gets into a new margining system, should brokers get more leeway with clients?

Answer
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Neelam Naik answered.
2 months ago


Unless the SEBI says to the contrary, the new margin rules will be applicable from Sep-20. However, SEBI will be meeting the brokers and the depositories on 31 August to take a final view on the subject. Let me take you to the impact on margins.

It must be remembered that broking is as much a business of relationships as it is of risk management and systems. Brokers differentiate their services with relationships. The new margin rules could actually take away that advantage of brokers.

Actually, when a broker offers attractive terms to a client, the risk is borne the client and the broker. The market mechanism is not going to be disrupted in any way. Also, the RMS and processes at exchanges and clearing houses are robust enough to handle volatility risk.