SEBI allows margin relief against early pay
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI said on Thursday that clearing corporations will not collect margins from trading members on clients’ subsequent buy or sell positions in the cash segment.
- ✓This relief applies up to the value of securities where early pay-in was accepted.
- ✓The move aims to help clients who have net sell obligations.
Story at a Glance
- Category
- MARKET
- Reported By
- CNBC TV18
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
New Delhi: Market regulator SEBI on Thursday said clearing corporations will not collect margins from trading and clearing members on clients’ subsequent buy or sell positions in the cash segment, up to the value of securities for which early pay-in (EPI) has been successfully accepted.
The decision aims to provide margin relief to clients who have a net sell obligation in a settlement and have completed the EPI process through the clearing corporation.
"It is decided that where a client has a net sell obligation in a settlement, and the EPI request for the sold securities has been successfully accepted by the CC, the CC shall, on a real-time basis, not collect margin from the Trading Member (TM)/ Clearing Member (CM) on the subsequent buy/sell positions of the client, up to the amount of such accepted EPI," SEBI said in its circular.
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CNBC TV18
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