Sebi allows margin relief against early pay-in of securities for subsequent trades

What happened: Sebi issued a circular allowing clearing corporations to give margin relief to clients with a net sell obligation in a settlement who have completed the early pay-in (EPI) process for the sold securities. Why it matters: The relief, based on proposals from Broker ISF and RMRC recommendations, means clearing corporations will not collect margin on subsequent buy/sell positions up to the accepted EPI amount. Trading members must ensure risk systems allow squaring off or fresh positions only when requisite client margins are available.

Sebi issued a circular allowing clearing corporations to give margin relief to clients with a net sell obligation in a settlement who have completed the early pay-in (EPI) process for the sold securities.

The relief, based on proposals from Broker ISF and RMRC recommendations, means clearing corporations will not collect margin on subsequent buy/sell positions up to the accepted EPI amount. Trading members must ensure risk systems allow squaring off or fresh positions only when requisite client margins are available.