India's SEBI considers removing upfront margin for early pay-in trades
Business
SEBI, India's market regulator, is thinking about dropping the up-front margin rule for buying stocks with money from same-day sales under its early pay-in (EPI) system.
This change, still under review, is meant to boost cash market activity and make things smoother for investors.
Upfront 20% margin burdens smaller traders
Right now, brokers have to set aside about 20% of the purchase value as margin when investors want to use their sale proceeds immediately, which can be tough, especially for smaller players.
If SEBI goes ahead with this plan, it could make trading more flexible and help reverse the recent dip in cash market turnover.
The move is part of a bigger push by SEBI to encourage more people to invest and keep markets lively.