Simple Explanation of New Margin Rules
New Margin Rules
For pledging stock the stock will continue to remain in investors Demat account and can be directly pledged to the clearing corporation.
It is mandatory for broker to collect upfront margins from investors for any purchase and sale trade. If any investor failed to do it he will be penalised for this from stock exchange.
The POA contract cannot be used for pledging anymore.
Investor will have to pay at least 30% upfront margin both sell and buy trade.
Share bought today cannot be sell tomorrow. It means BTST closed.
According to SEBI new rules Intraday profit can be use after T+2 days .
Before SEBI new rules, the margin of trade fulfil after a trade but now after SEBI come with new rules it is requires to all investors to fulfil their margin obligation at the beginning of the trade.
All buy and sell transaction require payment of margin.
If there is sell transaction done in early pay in there does not require margin for sell.
Margin has to be paid upfront for purchase and sale transaction. Either he broker is liable to be penalised by stock exchange.
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