Comment on Intraday leverages reduced across the board

Krishna commented on 07 Jan 2020, 05:48 PM

You are correct. Span + Exposure Margin was implemented long back in FNO. On November 19th Sebi came up with a similar framework for Cash as in case of Cash upfront money was not required ( most of the traditional brokers) This has nothing related to MIS Margins being reduced in FNO. It’s been over complicated by Zerodha . Not sure the reason behind it. The benefiting parties have also convinced some dumb babus in NSE to bring their own interpretation of the Sebi circular on the FNO section and NSE released some circular on 31st December. I have accounts with other Brokers including Zerodha. I discussed with them ( other brokers) in length and none of them have this interpretation nor are they changing anything in FNO. They are going to Sebi tomorrow only for the Cash segment. Meaning you will continue to have leverage as earlier in FNO unless some Lobbying is done to force this additional thing to block Leverage trading.
If Zerodha has removed the leverage, I cannot fight asking them to revert as it’s their call. Luckily we do not have a monopoly of brokerage firms in the country like we have in telecom these days.

Also Karvy example is wrongly portrayed. The new rules actuallly encourage Karvy like cases in future

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