Margin Requirements for Stock Trading & Investment: What You Need to Know
Last Updated: 29 June, 2024
2 min read
00:00 / 00:00
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
The content on this blog is for educational purposes only and should not be considered investment advice. While we strive for accuracy, some information may contain errors or delays in updates.
Mentions of stocks or investment products are solely for informational purposes and do not constitute recommendations. Investors should conduct their own research before making any decisions.
Investing in financial markets are subject to market risks, and past performance does not guarantee future results. It is advisable to consult a qualified financial professional, review official documents, and verify information independently before making investment decisions.
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