What is the changes in Limits/margin benefit from 1st Sep 2020?

What is the changes in Limits/margin benefit from 1st Sep 2020?

SEBI and Exchanges, has introduced changes in certain rules for collection and reporting of margins received from clients. Below areas in which it will be an impact on the way you are availing margin benefit for trading.

Margin Benefit while Buying shares: The benefit of purchased shares will be provided to the client after T+1. Once the actual delivery of shares is received, the shares will be transferred to Demat account, if debit arising from buying the shares is cleared, or you have created a forward pledge for availing margin funding facility; else shares will remain in Client unpaid securities pledgee account (CUSPA) and will be sold on T+5 day.

Margin Release after Selling Shares: You may ONLY get the benefit of shares sold on T-day (i.e. instantly on the same day of trading) if stock are in your Demat account. Benefits of sales proceeds for Pledged stocks, Intraday Profits, BTST trades and CUSPA Pledge will only be available on T+1 day.

Squaring off Buy Option position to take another position: Sale proceeds from options can only be used for purchasing another option contract. It cannot be used for purchasing any other stock in cash segment or futures contract.

Profits from intraday trading: Profits arising out of intraday trading, though getting credited in the ledger will not be available as Net Available Margin on T+1 Day.

Merged Settlement: Profits arising out of intra-day trading (all segments) or any credit proceeds arising out of sale transaction will not be available under ‘net available margins’ till the merged (multiple) settlement are fully settled.




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