ICICI Securities On Indian Exchanges - New Margin Norms Sets In From December

ICICI Securities On Indian Exchanges - New Margin Norms Sets In From December

Brokers watch their screens during trading hours inside a dealing room. (Photographer: Abhijit Bhatlekar/Bloomberg News)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

With effect from December 01, 2020, Securities and Exchange Board of India has mandated collection of upfront margin from clients, which can be peak margin or end of day margin, whichever is higher, in intraday as well as delivery.

Brokers will move away from using the end of the day position to calculate margin requirement to using intraday peak margins.

Anecdotal evidence suggests that maximum number of trades undertaken in the system are largely intraday in nature and, with this regulation kicking in, there can be an impact on overall volumes traded on the exchanges (both cash and derivatives segment).

Click on the attachment to read the full report:

ICICI Securities Indian Exchanges Sector update Margin Norms.pdf
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This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

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