India's SEBI exempts extra margins for early pay-in trades
The Securities and Exchange Board of India (SEBI) just rolled out a new rule that makes life simpler for traders and brokers.
Now, if you sell shares and use the early pay-in (EPI) option, basically handing over your shares before the usual deadline, you won't have to cough up extra margins for new trades within that EPI amount.
The idea is to ease the cash crunch for brokers, while still keeping risk checks in place.
EPI value counts as margin immediately
Before this update, brokers had to set aside about 20% up front as margin even if they sold and bought on the same day.
With the new framework, your EPI value or sold share value counts as margin right away.
If a client reverses the sale of securities for which the EPI benefit was used, any shortfall will be blocked from the trading member's or clearing member's proprietary collateral.
These changes kick in from February 22, 2027, so mark your calendars if you're into trading!