New Margin System in Indian stock Market wef 1st June 2020
|SEBI has issued guidelines for a new Margin framework which will be effective from Monday, 1st June 2020.
The new margining system encourages clients to set hedged positions since margins will be reduced on certain hedged positions and various option strategies. Margins will be slightly higher for certain naked Futures (Long or Short) and naked options writing. VAR Margin for Scrips has been changed in Equity Cash Market as well. Clients can remain safe or mitigate loss with the help of hedged positions.
Please monitor your positions carefully and add sufficient Margins to safeguard your positions against any Margin Shortfall.
|The following illustrations are based on values taken from Wednesday, 20th May 2020 for 1 Lot :|
|In Hedged positions, the margin requirement is decreasing approximately by 49% in case of Futures Buy and Put Buy Hedge (Protective Put) and by 12% in case of Futures Buy and Call Sell Hedge (Covered Call).|
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