How will peak margin affect my margins for trading in the Cash Segment?
For intraday: Intraday exposures will now be restricted to max 5X. Currently, we offer up to 6.6666 X on some category of stocks but post-Sept 1 maximum exposure will be restricted to 5X.
For Delivery sell: Currently, we release 100% of Sell value for purchasing any other stock or to take a derivative position. However, we will only be able to release 80% of the sell value for that day. It means if you sell a stock worth Rs.1,00,000. Then only 80,000 will be released as margin which can be used to purchase any other stock. From next day i.e. T+1, 100% sell value will be available for trading.
For Buying back delivery sell on same day: If you sell stocks, we will release 80% margin under presumption that we will be able to deliver these shares to exchange in early pay-in. (a) If you don't take any further position on such margin release against sale there will be no change and you can buy these shares back. (b) However, if you take further positions in other stocks and either carry such position or square it off later during the day and also buy the original shares sold against which margin was released then, it will attract margin penalty because, there will be no sell obligation and we will not be able to do early pay-in to exchange.