Margin Requirements for Stock Trading & Investment: What You Need to Know

Margin Requirements for Stock Trading & Investment: What You Need to Know

by Anjali Sharma
13 June 20242 min read
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Margin Requirements for Stock Trading & Investment: What You Need to KnowMargin Requirements for Stock Trading & Investment: What You Need to Know
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After SEBI released the new circular on changes in margin requirements.

There’s a lot of hustle-bustle about what is going to be changed for the customers as well as for the brokers from 1st September 2020.

So, Rupeezy has come up with on-point brief changes before and after 1st September for all the clients associated with Rupeezy.

Understand this by the following pointers

The stock sold from Demat holdings

Before (till 31st August)
After (from 1st September)
For trade in F&O or to buy other stocks, the proceeds can be used to buy 
There wouldn’t be any changes as the stock is debited on the same day and give them to the exchange under the early pay-in-mechanism 

Stock sold from BTST (T1 holdings)

Before (till 31st August)
After (from 1st September)
For trade in F&O or to buy other stocks,  the proceed can be used to buy 
To buy other stocks the entire proceeds can be used and to trade in F&O you can buy 60% of the proceeds

Intraday profits earned 

Before (till 31st August)
After (from 1st September)
The proceeds can be used to buy stocks and to trade in F&O on the same day 
The earnings cannot be used until settled by the Exchanges (I.e., T+1 for F&O and T+2 for equity) 

Options sold 

Before (till 31st August)
After (from 1st September)
The proceeds can be used to buy stocks and trade in either currency or equity F&O on the same day 
The proceeds can be used only to buy options in the same segment I.e., option sell credit for stock options cannot be used to buy currency options

To know everything about the latest updates into the stock market, tune into our blogs under the knowledge hub on our website. 

Have great trading! 

Rupeezy 

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