Comment on Regulatory changes from 2nd May: Segregation of client collateral

Anand Balakrishnan commented on 04 May 2022, 09:55 PM

Sir – Today to buy Reliance Futures, as an example, the margin required is 1.3 lacs. This is roughly 22% of 250* 2700 = 6.75 lacs.

I was under the impression that 50% margin means 50% of 6.75 lacs. However what I understand from the article above is that at least 50% of 1.3 lacs needs to come by cash and the rest can come with collateral. If I have 100% cash to fund these trades (1.3 lacs, ignoring MTM losses for the moment) then nothing changes at all, is that right?

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