SEBI plans risk based margins for equity cash trades
Business
SEBI is planning to move from the current flat 20% up-front margin for equity-cash trades to a risk-based system.
This means your broker could soon ask for a lower margin, especially on popular, highly traded stocks, potentially making it easier and cheaper to start trading.
You'll pay either the new risk-based amount or stick with the old 20%, whichever is less.
Liquid stock margins may fall 10-15%
Early numbers suggest up-front margins on liquid stocks could drop by 10% to 15%, which might boost market activity.
SEBI is also looking at updating rules for top-traded stocks, possibly making margin trading and short selling more accessible.
All these changes are aimed at modernizing India's markets, making them more efficient for everyone.