New Margin Guidelines and Peak Margin
For Cash segment intraday trades, since December 01, 2020 till February 28, 2021 we have charged minimum margin of 5% in the 1st Phase. In the 2nd Phase applicable from March 01, 2021 till May 31, 2021 we charged 10% margin on intraday trades. In the 3rd phase, applicable from June 1, 2021 till August 31st 2021, we charged 15% margin for Intraday trades. 4th (Final) Phase, starting September 1,2021 shall require us to charge 20% margin for Intraday trades.
For Derivatives, Since December 01, 2020 till February 28, 2021 we have charged minimum margin on intraday trades at 25% of SPAN+ELM in the 1st Phase. For the 2nd Phase, which started from March 01, 2021 we have charged minimum 50% of SPAN+ELM as margin for intraday trades from June 1, 2021 charge 75% of the SPAN+ELM or higher. In phase 4 i.e. from September 1, 2021, we are collecting it will be 100% of the applicable margin will for Intraday trades in F&O.
Let us with an example understand the initial margin required in the upcoming phase (4th Phase of Peak Margin). Initial Margin is the Margin that gets blocked by the broker at the time of initiating the trade and is calculated as a % of the trade value.
Regulatory Margin currently for Equity Intraday products of Margin Buy/Sell & Margin Plus Product is 20% and for F&O, it is SPAN + ELM for Intraday Products of Future Plus, Future Plus Stop Loss and Option Plus.
In the 1st Phase, the initial margin for Intraday Margin & Margin Plus was 25% of this regulatory margin which is 5%. For F&O, 25% of SPAN + ELM.
In the 2nd phase, the initial margin for Intraday Margin & Margin Plus was 50% of this regulatory margin which is 10%. For F&O, 50% of SPAN + ELM.
In the 3rd phase,the initial margin for Intraday Margin & Margin Plus was 75% of the regulatory margin which is 15%. For F&O, 75% of SPAN + ELM
Now in the 4th Phase, starting September 1, 2021, the initial margin will be 100% of the regulatory margin which is 20%. A minimum of 20% or any higher margin will be applicable for all the stocks in Margin Buy/Sell and Margin Plus. For F&O, 75% of SPAN + ELM
| Stocks |
New Margin w.e.f. 1st September 2021 |
| Where current initial margin is less than 20% |
20% |
| Where current initial margin is more than 20% |
No change. Existing margin will be applicable |
Eventually from September, 2021 onwards the initial margin required for Margin Buy/Sell and Margin Plus will be as per regulatory minimum margin which is 20% or higher.
For F&O, the following example for Intraday Product of Option Plus* can be referred to:
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