link for the circular – click here which is effective from Jan 1st 2020.
1. As per SEBI regulations, margin shortfall penalty is levied on overnight positions held in the trading account without sufficient margin
The penalty levied in case of shortfall in SPAN + exposure Margin for F&O positions :
| Short collection for each client |
Penalty percentage |
| (< Rs 1 lakh) And (< 10% of applicable margin) | 0.5% |
| (= Rs 1 lakh) Or (= 10% of applicable margin) | 1.0% |
2. disallowing brokerage firms to pledge client securities
link for the circular –click here, this circular is issued to ensure that client securities can’t be mis-utilized by the brokerage firm.
3. stock exchange are directed to provide margin requirement to broker (now regulated) for intraday purpose, if proving leverage above then listing, broker shall be liable for any shortfall.
4. online broker are now directed to open NON-POA account with their customers. reason being they are directed to take adequate margin from seller-buyer to make sure delivery of shares to the buyer.
happy readings…
Gaurav Bohra
