InvestorQ : Is it correct that SEBI and exchanges have put off the plan to mandatorily charge upfront margins for all trades from the clients?
Archita Jajjoo made post

Is it correct that SEBI and exchanges have put off the plan to mandatorily charge upfront margins for all trades from the clients?

Answer
user profile image
Rashi Mehra answered.
7 months ago


When the move to impose mandatory upfront margins was first announced, many traders and brokers began to panic because it would require the creation of a system of margin collection that could impact volumes of business. Now, apparently the regulator is also having second thoughts of losing out on volumes and may permit a system wherein the broker partially funds the position of the client. This would come as a big boon for the intraday traders because as per the proposed norms, these intraday traders would have had to bring in full margins applicable to the stock, although it would get reversed at the end of the day. Now with brokers permitted to partially fund such positions, those volumes may not exactly suffer. This is all the more important because for most Indian brokers, intraday trading accounts for nearly 50% of the total daily volumes.