No other broaker has implemented this 50:50 rule of bringing 50 % cash and 50 % from pledge margin. I have family members account with Zerodha, IIFL, RK Global and fyers in which I trade in daily. Except Fyers, no one is insisting to bring in 50 % cash. On my tweet to Mr Tejas, he replied that he is acting 5 months in advance as this rule will ultimately come through. As far as I know, SEBI deffered this requirement and has not given any fresh date for implementation. My Tejas Khoday replied me that he is trying to do something. I really fail to undersatnd, what was necessity for Fyers to act in 5 months in advance ?
Is Fyers implementing the new collateral margin of 50% cash from December 1st or we can use 100% collateral from pledging shares?
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Point no. 18 from the SEBI circular :
CM's are required to maintain at least 50% of the total collateral in the form of cash or cash equivalents. At individual client level, a client may have allocation of cash equivalent, less than the value of non-cash collateral provided by the client. In other words, the minimum 50% cash equivalent collateral requirement may not be applied at the client level. For the purpose of monitoring of at least 50% cash-equivalent collateral at the level of CM, the excess cash-equivalent collateral of a client shall not be considered for other client or for proprietary account of TM/CM. However,the excess cash-equivalent collateral of proprietary account of TM/CM can be considered for clients trading/clearing through them,for the purpose of monitoring minimum 50% cash-equivalent requirement.
So according to my understanding this 50% allocation is not mandatory for clients.
If there is any broker allowing to use 100% collateral you should be super duper careful buddy, Nikhil. Simple understanding is if you make losses, the cash is required to pay the counterparty right… if they don’ take any cash, they will either have to sell your collateral or pay from their own pocket or some other clients fund balance. Better to trade with a broker like FYERS who is following this than go with other aggressive brokers who can be doing anything just to get some extra business.
They clarified about this and updated policy (https://fyers.in/notice-board?p=50039) after that compulsory quarterly settlement rule. @Tejas Khoday92 and Nithin Kamath both hinted a brokerage hike in future. Maybe they are expecting number of trades to fall a lot or something.