InvestorQ : Why are brokers concerned about the new margining system in cash markets, which will be effective from 01 August 2020?
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Why are brokers concerned about the new margining system in cash markets, which will be effective from 01 August 2020?

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3 months ago
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The stock brokers association, ANMI, has expressed concerns over the margin collection framework in the cash segment. ANMI also wants to waive the additional margin framework for small investors with obligations of up to Rs.5 lakhs. This would substantially reduce the constraints for them.

The issue is back in the limelight as the new framework for margins in cash segment will be applicable from August 01, 2020. Under the new framework, collection of margins even for cash trades is mandatory. Even in the case of sale of securities, broker must collect margins if pre-pay-in of the stock is not done.

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