SEBI peak margin norms: Fourth phase to kick in from September 1

The fourth and final phase of the SEBI’s peak margin norms kicked in on 1st September 2021. This mandates stock and commodity brokers to collect 100% of the total margin required for initiating intraday positions. Read SEBI Circular.

Last year, SEBI had introduced the peak margin regulations with an aim to decrease speculative trading and curb the leverage brokers offer to their clients. 

This led the brokers to move away from using the end-of-day position to calculate margin requirement to using the intraday peak position from December 2020. The rules mandate the exchange to take snapshots of all margins randomly four times in the day, the highest margin of which will then become the peak margin.

What does this mean for you?

From 1st September 2021, you are required to maintain a margin equivalent to 100% of the overnight margin (NRML margins) even for your intraday positions in the F&O segment. 

So, in order to avoid position liquidation and steer clear of insufficient-margin penalty, kindly make the necessary margin available in the form of funds or pledge securities against your positions. 

To ease your margin burdens, you can pledge and avail the margin against your shareholdings using Samco’s StockPlus product, even without maintaining the 50:50 cash collateral with your pledged holdings. 

Moreover, you can now avail the lifetime subscription of StockPlus now at Re. 1/- (Earlier Rs. 1500/-).

If you haven’t subscribed to the StockPlus product yet, this is your chance. 

Subscribe to StockPlus Now

And if you’ve already subscribed to the StockPlus product, pledge your holdings to get margin against shares now. Pledge Holdings Now.

If you have any further queries related to this new margin update, feel free to get in touch with us on 022-2222-7777 or raise a support ticket here →

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