There two major regulatory changes from 1/09/2020.
* mathod of pledging stocks, and
* Upfront margin requirements ( Stocks and F&O on NSE BSE& MCX)
New pledging system
Until now, when you pledged stocks as collateral to receive margins for trading F&O, you had to move it from your Demat account to the broker and in turn to the clearing corporation. Going forward, the stock will continue to remain in your Demat account and can be directly pledged to the clearing corporation. Over the last weekend, we have unpledged all securities which were pledged with us to the customer Demat account, and many have repledged it using the new mechanism
New margins system
There are going to be a bunch of changes from tomorrow with respect to margin requirements.
Sale proceeds from the holdings can be used to take a new position
We are ready with a new system to debit shares from your Demat and make an early Payin to the exchange on the day it is sold. By doing this, we can ensure that you can continue using the full value of sale proceeds from your stock holdings as soon as you exit them to enter new positions — other stocks or F&O positions. While you might hear that this isn’t allowed at some other brokerage firms, nothing will change for our customers.
Using sale proceeds from T1 holdings
Similar to your stock holding, you can sell the T1 holdings (stocks bought the previous day and yet to be credited to your Demat) and use the entire value of the proceeds to buy new stocks for delivery. But there is going to be a small change here if you want to use the proceeds from T1 holdings to trade F&O, you will be able to use only 60% of selling value.
Intraday profits can be used for new position only after it is sattled
Currently, you can use intraday realised profits for taking new positions on the same trading day. Going forward, you will be able to use it only after 2 days in case of equity/stocks and the next day in case of F&O. This is because the settlement cycle for equity is 2 days and 1 day for F&O, which is when the profits get credited to your account from the exchange only then. So intraday equity profits earned on a Monday can be used to trade more only on Wednesday, and intraday F&O profits earned on Monday can be used to trade more only on Tuesday.
Option sell credit can be used only to buy options on the same trading day
When you exit your long/buy option positions or enter new write/short options, the proceeds or credit of option premium can be used for only new long/buy option trades on the same trading day and only within the same segment (proceeds from equity options can’t be used for currency or vice versa). You can use this proceed or option credit for all other types of trades only from the next trading day.
Regards,
Team Zerodha
Thank you
" Let's create wealth together "
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