Working capital requirements for brokerage firms to go up from Aug 1st 2022

August 1, 2022
Trading @ Zerodha

Hindi: इस पोस्ट को हिंदी में पढ़ने के लिए यहाँ क्लिक करें।

Penalties for brokers for not maintaining adequate working capital requirements kick in from today, 1st Aug. The second phase of the SEBI circular requiring brokers to provide a client-level allocation of funds to avoid one customer’s funds from being used by another goes into effect. This regulation was originally introduced in May 2022.

Brokers have to now start uploading client-level balances to the clearing corps (CC), based on which CCs will set client-wise limits. Until now, limits were set at the broker level or combined client levels, and not at individual client levels. The issue with this was that one customer’s funds could intentionally or inadvertently be used for another’s margin requirements. 

If you think about it, globally, pooled funds are the norm in almost all financial services businesses—banks, deposit-taking NBFCs, brokers, etc. The Indian broking industry is probably among the first globally to implement fund allocation at the client level to ensure that one customer’s funds can’t be used by another. While the industry will become safer for customers, this will increase the working capital requirements significantly for brokerage firms. Let me explain with a few examples of working capital requirements going up and what changes at Zerodha.  

Risk reduction mode at a client level

Until now, if the broker’s overall margin utilisation across all clients exceeded 90%, the broker would be put in a risk reduction mode (RRM) by the exchanges. That is if the total customer margin utilisation is over 90% of the total overall funds the broker has placed with a clearing corporation. When in RRM, the broker’s customers are only allowed to exit positions, but not take new positions. However, since all customers are highly unlikely to use all funds at the same time, brokers could easily avoid being in RRM mode.

Starting Aug 1st, RRM is at the client level. So either the broker will have to disallow the customer from utilising more than 90% of funds in the account or provide for the remaining 10% from the broker’s own capital. So, if a customer has Rs 1lk in the trading account, the broker should allow the customer to trade only up to a max of Rs 90,000 or provide Rs 10,000 from their funds, which means the working capital requirement goes up. 

Allowing sale proceeds to be used immediately

If a stock is sold today, 80% of the proceeds are allowed for trading immediately if the broker debits the shares on the same day and provides them to the clearing corps (early payin). But our markets use the T+2 settlement cycle (we will transition to T+1 next year), which means that if shares are sold, the proceeds get credited to the account only after two days of the sell trade from the clearing corps. Until now, a broker could provide the customer pooled funds as a margin for new purchases from sell credits yet to be realised. But with the new regulations, if a customer is allowed to buy more, the margin has to be from the broker’s capital. 

Allowing transactions before the payment gateway settles

When a customer transfers funds using NEFT, RTGS, or UPI, the funds are settled to the broker’s bank account on the same day. But if funds are transferred using a payment gateway (PG), the PG can take up to 2 days to settle the funds. So, if you transferred Rs 1lk using a PG to a brokerage account on Monday, and if the broker allowed you to trade with those funds, the broker typically receives the funds only after two days. But, the clearing corporations need the funds upfront before a client trades, so if it is not the customer’s funds, it could have been pooled customer funds until now. Now, brokers will have to allocate their own capital to allow customers to transact before the PG has settled the funds. 

50% cash requirement for pledged positions

If stocks are pledged as a margin for trading F&O, the customer must provide 50% of the margins used in cash. If they don’t, the broker’s capital gets blocked from fulfilling the “cash component” requirement by the clearing corps from Aug 1st 2022. 

Accounts with positions & insufficient margins 

Customers can’t take F&O positions without sufficient upfront margins, but an account can go to a negative balance due to a change in margins of existing positions because margins are calculated at a portfolio level. This could be either because margins go up when a position that reduces the risk of the F&O portfolio is exited or if the margin goes up due to intraday volatility. While customers get time till the next trading day to transfer marked-to-market losses, any margin increase must be available in the account immediately. Now, if a customer’s account has insufficient margins, it will start blocking from the broker’s funds. 

What changes at Zerodha? 

We are well capitalised, and our funds are more than 25% of total customer funds, which must be among the highest in the industry. This will mean that we will be able to continue to offer the same services and user experience as earlier: allow trading with 100% of funds, allow trading instantly with funds transferred using PG or stock sold, and nothing changes with the pledging experience. The experience should continue to remain the same even post Feb 2023 when the 3rd and final phase of client level allocation of funds starts. 

However, if a customer explicitly takes an F&O trade that causes their account to go into a debit resulting in a negative margin balance intraday or overnight, for example, exiting a hedged position, then the brokerage charges for orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20. This does not change anything for the vast majority of the customers. To ensure that this scenario doesn’t apply, simply ensure sufficient margin as always when taking trades.

Team Zerodha

India's largest retail brokerage

139 comments

  1. Raj says:

    Exiting a hedge position… and going into negative/debit balance in case of collateral funds also leads to Rs 40 brokerage?

    • Shubham says:

      Hey Raj, yes, if the “Available Margin” in your account goes negative then charges of Rs. 40 per executed order will be applicable when the margin was negative.

      • sunil says:

        How come order be placed if margin is negative ?

        • Shubham says:

          Hey Sunil, if you’re taking a position, the order will be rejected if you don’t have sufficient margins. For squaring-off the existing positions, margins are not required.

          • Raj says:

            For Intraday only, it means, if I hedge my position and reduce the margin (For Ex Sell on Lot and Buy one lot, so that, 30K margin instead of 1 lakh for one lot). And exit the hedge position (i.e. Buy One). Will i be charged for negative balance of -70K. Please clarify.

  2. Swaminathan says:

    What about delivery positions

    • abhimanyu says:

      is it for option buying ??
      can i do naked option buying using this leverage ?

      • Shubham says:

        Hey Abhimanyu, the collateral margin cannot be used for buying options, you will need to have cash in your account. Also, there is no leverage provided for buying options, you will have to pay the entire premium while buying options, just like earlier.

    • Shubham says:

      Hey Swaminathan, for you as a Zerodha user, things remain the same as they were earlier. The only change is if you take F&O trades that cause the account to go into a debit resulting in a negative margin balance intraday or overnight, then the brokerage charges for orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20.

      • John says:

        “Orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20.”

        So the short-margin penalty will not be charged ?
        Or
        Both short-margin penalty & 40 Rs brokerage will be charged ?

        • Shubham says:

          Hey John, the short-margin penalty won’t be passed on to the customer. We are also working on auto squaring off positions when the account moves into negative margins.

          • Shubham says:

            I don’t understand this. As of today, If my “available margin” is negative, I am not allowed to take any new optionposition (Buy or Sell). How will then INR 40 be charger on every executed order placed during the duration when “available margin” is negative ? Are you telling me going forward I can take positions even if my “available margin” is negative? Just that I’ll have to pay INR 40?

            • Shubham says:

              Hey Shubham, if you’re taking a position, the order will be rejected if you don’t have sufficient margins. For squaring-off the existing positions, margins are not required.

  3. MAGNUM says:

    “However, if a customer explicitly takes an F&O trade that causes their account to go into a debit resulting in a negative margin balance intraday or overnight, for example, exiting a hedged position, then the brokerage charges for orders placed during the duration where the account had negative margins, will be Rs 40 instead of Rs 20. This does not change anything for the vast majority of the customers. To ensure that this scenario doesn’t apply, simply ensure sufficient margin as always when taking trades.”
    what does this mean? even if it goes negative for a sec due to exit of hedge position before the main positions?

    • Shubham says:

      Hey Magnum, if there is a negative margin in your account and you place orders during that duration then Rs. 40 per executed order will be charged for each order placed during that time.

      • Nitin says:

        Is it allowed to place an order if account is in negative margins..??

        • Shubham says:

          Hey Nitin, if you’re taking a position, the order will be rejected if you don’t have sufficient margins. For squaring-off the existing positions, margins are not required.

  4. Kshitij saxena says:

    Hi guys

    I never use leverage ,
    don’t deal in futures or options segment.

    I only buy agst whatever cash is available to me in my funds position. So does this circular impact me in any way?

    • Annie says:

      I am always using Cnc buy and exit

      Is it effect me in any means
      Thanks

      • Shubham says:

        Hey Annie, it doesn’t affect you. When you’re buying shares using CNC, you pay the full amount while buying, if you do not have sufficient balance then the order is rejected. Similarly while selling shares in CNC you can only sell whether quantity you’re holding in your account.

        • Muthusamy says:

          However when i buy a share on cnc basis, i am required to pay 100% and the share appear as t+1 day holding on the t+1 day. But when such t+1share is sold on the next day, nothing is available in my account. 80% is available when i sell my holding but nothing is available when i sell t+1 holding for which i have paid 100%

          • Shubham says:

            Hey Muthuswamy, could you please create a ticket at support.zerodha.com, well have this checked and clarified.

    • Shubham says:

      No, Kshitij, it doesn’t.

      • Venkat says:

        This is an important reply. Thank you very much for clarifying to a person who (like me) did not understand it fully and was unsure if it impacts him/her.

    • Vinay says:

      I had a balance of 15, 000 and I was trying to make a purchase transaction of less than 10,000 but I got a message stating that I do not have sufficient margin available.
      Could you please advise why do I get this error.
      I am also buying through CNC…

  5. Joel says:

    For intraday fno 50 percent cash rule is applicable?

  6. Durgesh says:

    Very bad rule sebi margin change margin rule

  7. abhimanyu says:

    is it for option buying ??
    can i do naked option buying using this leverage ?

  8. Ankit Bansal says:

    I use margin by pledging my shares and pay interest charges for 50% balance which is for Cash component. Still brokerage of 40 would be levied?

    • Shubham says:

      Hey Ankit, brokerage of Rs. 40 will be applicable only if the “Available Margins” in your account go negative and you place any orders during this period. Everything else remains the same.

  9. D R Raju says:

    As long as you purchase with your own available funds. You have nothing to worry or care about all these rules

  10. Sebastine says:

    Use in sentense: ‘schadenfreude’: The exchanges shold now be feeling schadenfreude as their new directives put brokers and clients to more misery, without concomittant benefits to any.

  11. Paul says:

    Dear Zerodha,
    Why there is no scope of the scheme which will offer indefinite intraday F&O trading at a fixed cost?
    For an e.g,
    Suppose a customer purchases a package at 1000 INR which offers him to go for 100 intraday trade in all segments.
    Please think if possible, or in future, I will come in the market with such ideas 😁

  12. Sandeep says:

    Very good move

    It was Need of the hour to insulate safe players from novices, young & other high risk trader’s actions spilling over, in a ovwr heated market.

    Why shud mine or for that matter even the brokerage houses monies, be used as a pool account, to facilitate some1 else to take risky positions

    • Varun says:

      It was never about using your or the broker’s money. See, I have given Rs 100 in the margin in the shape of pledged shares. Against that, since I have not given any cash margin, I was being charged 18% interest to the broker, even though, the broker was not funding that. The money was being used from the pool account. Now, in the pool account, all my pledged securities are there. Also, included are other clients’ cash and securities – all combined. The brokers get a combined margin from the clearing corporations (50:50 rule) and divide this limit among clients. The broker can not provide me with more than Rs 100 margin (peak margin rule). So where is the question of using anyone else’s monies to facilitate someone else’s trade? The change this rule has brought is that Rs 100 in cash need to be given by the broker from his personal account instead of the pool account.

      Now, what additional security does it bring in? To my mind, it will just increase the cost to the brokers and clients and nothing else as I have adequately covered my margin requirements as before and there is no change in this.

      • Aj says:

        Hi Varun,
        I don’t agree 100% with your view. You point is valid to some extent. e.g with Zerodha it might be valid, but what about other brokers ( e.g Karvy ) who were reluctant to credit the stocks purchased/sell proceeds to clients dmat/bank acct for weeks.
        Regards,
        Aj

  13. Rayankose says:

    What I observed from SEBI directives are always against the traders. For example if I one wish to trade Bank nifty F&O positions there is no scope for hedging in far OTM options. This type of restrictions leads to certain losses. restrictions should not be broker wise and if it is number of clients with broker wise is useful some extent. Does SEBI examine this query?

  14. Koteswararao says:

    I am always purchasing shares against my funds available in zerodha whether this rule is applicable to me

    • Shubham says:

      Hey Koteswararao, brokerage of Rs. 40 will be applicable only if the “Available Margins” in your account go negative and you place any orders during this period. Everything else remains the same.

  15. DCS says:

    Funds transferred using payment gateway pay should be available for trading immediately in future as well.
    If it takes 2 days it it won’t make any sense with this latest technology.
    Really not sure why RTGS transfer as well not make funds available immediately.

    • Shubham says:

      Hey, nothing changes for you as a Zerodha user. You can use the funds transferred via the payment gateway immediately for trading as before.

  16. Kushal Jain says:

    Does this impact BTST trades ?

  17. Rishi says:

    As such Zerodha has been demanding arbitrary margin money that is exorbitant and not regulated by any legal policy

  18. Sadashiv says:

    You have written we will transition to T+1 next year),

    I think it is next day instead of year… Please correct it.

    • Shubham says:

      Hey Sadashiv, exchanges are transitioning to the T+1 settlement in a phased manner, starting with stocks with the lowest market cap. By January next year, all the stocks will be under T+1 settlement. You can learn more on the T+1 settlement here.

  19. Farhan says:

    Why the broker community are not opposing and protesting to Sebi about these useless rules.

    Earlier sebi refused trading account funds to be used to buy mutual funds. This is already causing big inconvenience

  20. desai says:

    I only buy agst cash available in my funds. I do not think this circular applies to me. Pl. explain by mail.

    • Shubham says:

      Hey Desai, brokerage of Rs. 40 will be applicable only if the “Available Margins” in your account go negative and you place any orders during this period. Everything else remains the same.

  21. R Chandra says:

    Hi guys,
    I am new to this business. However, I use to trade within fund available in my account.
    Whether this guidelines will affect me ?

    • Meher Smaran says:

      Hi,

      No, it will not affect you at all.

      It will only affect those traders whose balance becomes negative. For them, Brokerage charges for the orders placed during the duration of negative balance will be 40 instead of 20.

  22. Ajay Kumar says:

    Ajaykumar
    2023 me
    I only buy agst whatever cash is available to me in my funds position.

    • Shubham says:

      Hey Ajay, this does not affect you. It will only affect those traders whose balance becomes negative. For them, brokerage charges for the orders placed during the duration of the negative balance will be Rs. 40 instead of Rs. 20.

  23. Gopalakrishnan says:

    Please clarify, due to volatility spike or revised margin my available fund balance becomes negative,
    if I place an order to reduce the position to bring my fund balance to positive (order for credit not debit)
    will it be charged Rs. 20 or Rs. 40?

    • Shubham says:

      Hey Gopalakrishnan, since you will be placing orders when the margins are negative, the brokerage applicable will be Rs. 40 per executed order during this period. You can keep some buffer margin in your account to cover for margin changes to ensure the balance doesn’t go in negative.

  24. Parikshit Mahati says:

    Every broker of india should oppose this type of circular issued by SEBI so that trader feel relaxed.Why should the trader give SEBI the opportunity to hang the sword over the neck.We should protest against the SEBI.We should learn a lesson by avoiding trade either for a week or a month.

  25. Bijuy says:

    Is customers have to maintain 50% cash requirement/Components for FNO trading ?

    • Shubham says:

      Hey Bijuy, yes, for F&O trades you will have to maintain a minimum 50% margins in cash and the remaining 50% can come in form of collateral. Just like it was earlier.

  26. Bhootara says:

    After providing better service, now it is surprising to me to provide more facility despite the restriction of new rules automatically. This decision shows the strength of zerodha.

  27. ravi says:

    i have sold my stocks on Friday still its not settled. when they will settle any idea.

  28. arpit says:

    what changes from Feb2023?

  29. Sunil says:

    What about peak margin penalties levied till 30 July,will those be refunded to clients as broker were not supposed to pass on the penalty to clients.??

  30. V Pradeep says:

    I do trading in DELIVERY and my trading account balance is ZERO

    Will this new working capital rule effect me?

    • Shubham says:

      Hey Pradeep, the brokerage charges of Rs. 40 will be applicable only if you place orders when the balance is negative. Other than this, everything remains the same.

    • Shruthi R says:

      Hey Pradeep, it will only affect you if you have a negative balance and take F&O trades. In such cases, the brokerage charges for the orders placed during the duration of the negative balance will be Rs. 40 instead of Rs. 20.

  31. Vishnu says:

    Hi Zerodha,
    Great post as always. But only Hindi translation is provided. What about other languages? My father uses Zerodha too, and it’ll be helpful if you can provide posts in Tamil too.

  32. Jay says:

    Dear sir , if my cash margin is shortfall then what charges I have to pay ? Only interest or any other penalty…kindly guide me as per latest sebi rule

    • Shubham says:

      Hey Jay, if your cash balance is negative then interest will be applicable at 0.05% per day. Other than this there are no additional charges.

  33. B.RAMA KRISHNA RAO says:

    Dear Zerodha team,

    If I have delivery of XYZ stock and if I want to trade in them, what are the applicable rules. Please guide taking the following example.

    I have delivery of 1 lac worth shares and I sell them first and want to cover the same on the same day. Is this fine, please guide.

  34. Mitesh Nandu says:

    How to Find How much cash Component Required for Shorting Options(Options Selling)? what Happens if Cash Is less than Reuired? How is Charges calculated?

  35. YU2090 says:

    I have pledged equity. i also have cash component. I take iron fly position. Once in a while I want to adjust the position by moving the strikes of long options towards the short options as the diff starts reducing in the OTM contracts. Now, Zerodha does not allow me to take additional long positions than necessary to hedge. (1*). This necessitates me to sq off the long positions first and then buy at strikes close to the short straddle strike. So, for a brief time my margin could go beyond double that of the cash I hold. It hasn’t happened yet but it can if I want to take a bigger position (more lots) which otherwise needs very less margin (Iron fly). I make sure it is well within cash+pledge amount. My questions are: (1*) will I be allowed to take long positions outside the band? Will the band exist now that one whale does not take all the broker limits keeping us out of the market? I have to do all these workarounds and not being able to do a trailing stop loss to enter first and then exit the long positions. (2) What happens if the margin required crosses above double the cash component during adjustments? Thanks, Regards,

    • YU2090 says:

      “Will the band exist now that one whale does not take all the broker limits keeping us out of the market? ” …. well that is my interpretation of “RRM at client level” … If I hold enough margin then I can not be barred from taking whatever position I wish because the broker has exhausted their limits – thanks to a whale taking massive positions and exhausting the broker level limits. ——– I can be totally wrong. If that is the case please explain. Thanks, Regards,

  36. Jay says:

    As from 1 August peak margin penalty only will be when there is negative fund in the begining. No snapshots will be taken whold the day. Ok sir. Now suppose if I cut my buy position and remain only with sell side then fund will be negative immediately , then what will happen, will there any penalty or zerodha will cut my position or whattt??? Plz help

  37. Pavan says:

    Is the 50 % cash margin requirement applicable to intraday trades as well?

  38. Anish says:

    So, Can i say that as long as my Available margin (Cash + Collateral) is not negative, Everything’s fine and I don’t have to worry about any interest or penalties from
    Zerodha..
    Am i right?? Pls tell

  39. Ananth says:

    when I open my account is shows -184, is that mean I’m not keeping enough balance in my account? the balance which we not used, automatically credited to our bank account right!!

  40. krishna says:

    hey ,will option buying margins will increase from feb 2023 by this sebi circular.please clarify me

  41. Harshvardhan says:

    This new rule will beneficial for existing broking firms , because this will cause a barrier for the new players to enter into broking business

  42. Sandeep says:

    So basically we should not worry because ” Tu or tumhare pitaji k pass bahut sara paisa h” 😉

  43. Deepam Patel says:

    If we sell delivery or btst position in cash market, does the funds will be available after T+2 days to buy next delivery based position in cash market?

    • Shubham says:

      Hey Deepam, nothing changes for you as a Zerodha user. Just like earlier, when you sell shares from holdings, 80% will be credited immediately, while the remaining 20% will be blocked under delivery margin field and will be available form the next day.

  44. Abhishek j says:

    Will I still require 50 percentage cash Margin of I already use the pledge Margin in Intraday trading.

    • Shubham says:

      Hey Abhishek, for intraday you can use 100% collateral margin, the 50-50 Cash – Collateral requirement is for overnight positions. Just like earlier.

  45. Shoaib says:

    What will be the charges of intraday trading for 1 trade

  46. Rajendra singh vist says:

    When a position is try to square off which is in profit, your system allow to square off but not whole quantity in one order. Has to be placed multiple orders. Why square off orders behave like this

    • Shubham says:

      Hey Rajendra, could you please create a ticket at support.zerodha.com with more details, so that our team can have this checked and clarified.

  47. Mahendra Jaiswal says:

    Zerodha is best for a medium level investor and trader.

  48. Hemant says:

    Dear Team,

    Appreciate your support in spite of change in rules.

  49. Yograj says:

    As from 1 August peak margin penalty only will be when there is negative fund in the begining. No snapshots will be taken whole the day. Ok sir. Now suppose if I cut my buy position intentionally and remain only with sell side then fund will be negative immediately , then what will happen, will there any penalty or zerodha will cut my position or whattt??? Plz help

    • Shubham says:

      Hey Yograj, the short-margin penalty won’t be passed on to the customer. If you’re not maintaining sufficient margins, you will get a margin call, if you fail to add funds, the position will be squared-off.

  50. User says:

    Wait, I never use any kind of margin. And only buy options intraday only upto the amount of funds I have in my account. Does this mean now due to whatever “volatility” stuff jargon mentioned, my balance can go into negative? Even when I only used my own funds?

    When can funds balance go into negative exactly?

    • Shubham says:

      Hey, if you’re only buying options, this doesn’t affect you. For buying options, SPAN and Exposure margins aren’t blocked since the loss is limited to the premium paid, which you pay upfront.

  51. MK says:

    For someone who trades F&O intraday posting huge margin and cannot miss a single day of trading, is there any change in availability of funds transfered via payment gateway? Right now funds are available immediately. Specifically when after quarterly settlement we are required to transfer the funds back into trading account.

    • Shubham says:

      Hey, nothing changes for you as a Zerodha user. You can use the funds transferred via the payment gateway immediately for trading as before.

  52. Domadiya mayur says:

    Fund is not add in wallet

  53. Avy says:

    What is new margin rule for index option (nifty&banknifty CE&PE)i.e if nifty CEorPE of any strike price is at Rs 60rupees of one lot then how many balance is required for trade in itraday or keep it for overnight or if I exit it in same day ,than can I use the balance of self for another trade or not?

    • Shubham says:

      Hey Avy, the margin requirement for taking the positions remains the same. The margins released from squaring-off your Short Option or Futures position can be used immediately for taking new trades. While the premium received from selling options can only be used for buying options on T – Day, you will be able to use it for all other trades from the next day.

  54. Animesh Biswas says:

    Yes

  55. Trilok says:

    Excellent!!!
    Great to know that Zerodha will be not holding or blocking capital from its customers in equity and cash trading even after the final phase implementation in 2023. Congratulation on being well capitalized and being among the highest in the industry!

  56. Ashwin Biyani says:

    Zerodhas funds requirements go up only when there is a -ve balance in our ledger for which you were charging interest already, if your cost of funding is higher, you should increase the interest rate & not change your transaction brokerage rate logically. Please let me know if i am wrong in my though process.

  57. Kuldeep says:

    Is there any limit for everyone now. If yes please tell

  58. Chaitanya says:

    when i sell stock in my account, some amount is held back as margin which will be available only on the next trading day. when i book profit in an intraday option trade same thing happens. the profit is not available immediately to trade not until the next trading day. why is it so?

  59. MLNSARMA says:

    HI zerodha.When I want to purchase an option using my own funds,some times the trade is not allowed,saying that the strike price is out of the range prescribed.Why shud this happen when I use my own funds?Is zerodha blocking such a trade?

    • Shubham says:

      Hey, we allow buying options of any strike for hedging purposes if you hold a short option position. The restriction is for naked long options due to the member-level OI limit. We’ve explained this here.

      If you want to trade without strike price restrictions, we have an alternative solution for this. More details here.

  60. Raju says:

    Now what for clients and customers,do they from now on definitely have to maintain minimum balance in demat accounts ? Does this new notice mean this? Please tell in short sentence.

    • Shubham says:

      Hey Raju, you do not have to maintain any minimum balance in your account. It will only affect those traders whose balance becomes negative. For them, brokerage charges for the orders placed during the duration of the negative balance will be Rs. 40 instead of Rs. 20.

  61. Nagarjuna says:

    Zerodha transfered unused fund but it’s not credited in my account..How many days will take to process..

    • Shubham says:

      Hey Nagarjuna, the payout has been processed from our end and the funds will be credited to your bank account by 5 PM today. Please check your email for more details.

  62. Shailesh says:

    How will this change affect Currency Futures trading? Can someone please explain?

    • Shubham says:

      Hey Shailesh, everything remains the same. There’s only one change, which will only affect those traders whose balance becomes negative. For them, brokerage charges for the orders placed during the duration of the negative balance will be Rs. 40 instead of Rs. 20.

  63. trivina says:

    can liquid bees be placed instead of cash for margin collateral?

  64. KBRastogi says:

    Clarifications were explicit.
    Thanks for the support to clients.

  65. Manish says:

    Hi
    Could you pls eloborate and provide us the details as to regarding the 3rd phase of sebi circular taking effect post FEB 2023. Thanks

  66. Suresh Babu uppala says:

    Thanks to your support

  67. jay says:

    As from 1 August peak margin penalty only will be when there is negative fund in the begining. No snapshots will be taken whole the day. Ok sir. Now suppose if I cut my buy position intentionally and remain only with sell side then fund will be negative immediately , then what will happen, will there any penalty or zerodha will cut my position or whattt??? for example i have 1 lac capital and iam holding a call buy and call sell …..if i cut my buy side call , then there will be negative fund immediately and having only sell side call . o . now in this case what will happen , will there be any penalty … any charge …. or what …plz help me

    • Shubham says:

      Hey Jay, there will not be margin penalty. If you are short on margins for open positions, you will get margin call to add funds to your account; if you fail to add funds, your position will be squared-off. More on this here.

      • Jay says:

        When will zerodha cut my position if I don’t add fund.
        Sir practically if I have 500 qty buy option and 500 sell qty. If I cut my buy position then fund will be negative huge -20 lac, then what will happen. Plz say me… If nothing will do then can I make this practice …..

        • Shubham says:

          Hey Jay, the position will be square-off at the discretion of RMS if you fail to add funds after the margin call. Would suggest you avoid funds immediately to avoid this.

          • Jay says:

            U mean RMS team will cut position due to negative fund balance ok . There is no any other penalty or charge for that huge behave balance of 20 lac . While end of the day I cut that sell position .

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