Brokerages want bourses to revisit margin norms ahead of implementation

New directions suggest clients cannot use sale proceeds for other trades

Brokerages have asked exchanges to reconsider guidelines on margin collection and reporting, which suggest clients cannot immediately use sale proceeds from their stock positions as credit for other trades.  

"For a stock that is delivered, there is no bona fide reason to deny credit for the entire amount,” said Rajesh Baheti, director of the Association of National Exchanges Members of India and managing director of Crosseas Capital.

“There is no risk here as there is guaranteed money after the delivery of the security,” said Nithin Kamath, co-founder and chief executive officer, Zerodha, the country’s largest brokerage in terms of active clients.

In a