SEBI's new Margin rules explained in 7 points
Change in margin system and securities pledge-repledging could bring disruptions in volumes of daily trading as there is insufficient preparation. The new margin rules have come into effect after SEBI's refusal to extend the deadline to implement the new rules on margin pledge any further. SEBI's new margin rules aim at bringing transparency and preventing brokerages from misusing clients' securities. These norms came out earlier this year in February and were initially scheduled to come into effect from June 1. The date was then extended to August 1 and thereafter to September 1 . While the brokers and other participants requested more time to make their systems ready, SEBI refused to extend by saying there was enough time to do the changes. Here are the changes: 1. The stock will continue to remain in investor's demat account and can be directly pledged to the clearing corporation. As the securities remain in investors’ own demat account, they will enjoy all ...