Comment on Intraday leverages reduced across the board

Kiran commented on 04 Jan 2020, 10:26 AM

Hi Nitin

The entire sebi circular talks about collecting upfront margins for the Cash Segment and there is not mention of anything related to derivatives in the said circular.. so why is there so much speculation on providing leverages or not..

4.1.2 of the circular says “Henceforth, “LIKE” in derivatives segment, the TMs/CMsin cash segment are also required to mandatorily collect upfront VaR margins and ELM from their clients…………….”

which means that a customer is required to put upfront the margins required for cash segment.. “emphasising on the sentence … “LIKE in derivatives segment”, which as per my understanding should not affect providing leverages.. yes full margin is to be paid for holding overnight positions.. but how does this affect intraday leverages??

I am unclear on your reply since the Sebi circular does not mention anything about derivative segment in the whole thing.

Kindly clairfy

View the full comment thread »