Relief for brokers as Sebi relaxes norms for calculating peak margins

Broker's lobby had requested a change in the procedure for upfront collection of peak margins from clients in both cash and derivatives segment

The Securities and Exchange Board of India (Sebi) has relaxed the norms for calculating peak margins by brokers. In a circular, the market regulator has allowed margins to be fixed at the beginning of the day (BoD), doing away with the earlier requirement changing them frequently on an intra-day basis.

“In view of the representations received from market participants and based on deliberations with various stakeholders, it has been decided that the margin requirements to be considered for the intra-day snapshots, in derivatives segments (including commodity derivatives), shall be calculated based on the fixed beginning of day (BOD) margin parameters.