SEBI | Stock market Peak Margin rule to become effective from tomorrow onwards

SEBI | Stock market Peak Margin rule to become effective from tomorrow onwards-stuffsearth

Experts say traders and workers must adapt to the new rules as the maximum margin rule aims to reduce the risk associated with default.

Market participants earn arbitrage through exchanges, which can be difficult after the implementation of 100 upfront margin payment system, say experts

SEBI:  Stock Market Final leg of peak margin rules are getting to become effective from tomorrow i.e. from 1st September 2021. during this new norm, intraday traders will need to pay 100 per cent upfront margin rather than 75 per cent upfront margins. consistent with the market experts, there's need for correct adjustments to the present new rule otherwise it's going to create chaos, trouble and disturbance to the market participants, which include traders, investors and brokers.

They say the fourth phase of this maximum margin rule is a daunting task for day traders, workers and brokers as they will have to prepare their clients to release margin so late. workers, day traders and brokerage firms; Avinash Gorakshkar, Head of Research at Profitmart Securities, said: “Market participants receive arbitration through exchanges, which will be difficult after the implementation of the signed payment system. 100% initial fund ". He went on to add that if the rules for paying 100% of the initial margin for day traders are followed, trading volume is likely to decline for a while. Saurab Jain, AVP - Research by SMC Global Securities said: “The best brokers, traders and brokers need to be prepared for this, and therefore this new rule will not have much impact on them, because the first three steps of this rule worked like first... a stage of this maximum margin rule was put into effect in December 2020 with a maximum deposit payout rule of 25 installments. This rule is then increased to 50 and 75 percent in both subsequent periods of this maximum margin rule. 

Thus, traders and brokers are very knowledgeable about what is written on the wall here.

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