Leverage and Multipliers

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Starting June 1, 2021, all intraday leverages are set to reduce as per the calendar announced under the new peak margin regulations. The regulators require a minimum 75% collection of margin upfront for any trades. This will move to 100% by September 1, 2021.

The Member shall have to report the margin collected from each client, as at EOD and peak margin collected during the day, in the following manner:

  1. a) EOD margin obligation of the client shall be compared with the respective client margin available with the TM/CM at EOD. AND
  2. b) Peak margin obligation of the client, across the snapshots, shall be compared with respective client peak margin available with the TM/CM during the day.

Higher of the shortfall in collection of the margin obligations at (a) and (b) above, shall be considered for levying of penalty as per the extant framework.

Limits in Equity Segment Till August 31,2021:

Intraday

A group Stock – 6 times

B group Stock – 4 times

C group Stock – 2 times

Delivery

There is no change in Delivery Multipliers in cash segment, it will be same as what we have today.

A group Stock – 4 times

B group Stock – 3 times

C group Stock – 2 times

D & E group Stock – 1 time

Limits in Derivatives (FAO, CDS and MCX):

Intraday Limits will be maximum of 1.3 times of clients available deposit on any day in Intraday Product.

Deposit = Ledger Balance (Dr/Cr) + CUSA Stock Value + Pledge Stock Value + Un settled Purchase Value

** Stock value is after Exchange Haircut

Example:

In intraday, Client with deposit of 10 lac can take position up to margin of 13 lac (10 lac*1.3 times) at a time and can churn this multiple times during the day. Peak Margin Utilization for the day will be 13 lac out of which 75% has to be reported as clients available margin.

There is no change in Carry Forward limits in Derivatives, it is one time of Exchange margin as applicable today.

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