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Rajandran RAlgomojo - Co Founder
Founder - Marketcalls / Co-Founder - Algomojo

High Court asks Sebi, Centre to respond to plea challenging circular on upfront margin

It said the July 20 circular issued by Sebi will have a direct impact on the livelihood of many retail traders and there is an apprehension that if the volumes in derivatives deplete it will have an adverse effect on the corrections as there will be a huge drop in GST, STT and stamp duty revenues on derivatives trades.

It said the July 20 circular issued by Sebi will have a direct impact on the livelihood of many retail traders and there is an apprehension that if the volumes in derivatives deplete it will have an adverse effect on the... (More)

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SEBI
Rajandran RAlgomojo - Co Founder
Founder - Marketcalls / Co-Founder - Algomojo

Peak Margins : Phase 1 Likely to start from 1st Dec 2020 onwards

But what are peak margins?

Currently, margin reporting happens only at the end of the day for all the carry-forwarded trades executed by the customer on that particular trading day. This reporting system enabled brokers to provide higher leverages by offering products like intraday (MIS), cover order (CO) and bracket order (OCO). Brokers used to ask for lower margins from the prescribed limit of VAR (Value-At-Risk) + ELM (Extreme Loss Margin) for equities and SPAN + Exposure for F&O for creating an intraday position for their customers. This created a risk at the brokerโ€™s end as there could be cases... (More)