Indian Exchanges - Are Margin Norms Hurting Commodities More Than Equities? ICICI Securities Reviews
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ICICI Securities Report
As upfront margin requirement got hiked to 50% from March 01 2021, there has been mixed impact on equities and commodities.
While intraday cash volumes have been hit to some extent, derivatives seem to be broadly unaffected.
Discount brokers (e.g. Angel Broking Ltd.) have indicated some volume shift from cash to derivatives due to the margin impact.
However, the biggest impact is in commodities with Multi Commodity Exchange of India Ltd. average daily trading volume declining 24% in March-21 over February-21.
ADTV declined by Rs 90 billion composed of Rs 63 billion due to change in volumes and Rs 27 billion due to change in prices.
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