Sebi eases margin rules for trades post EPI

What happened: Sebi issued a circular waiving margin requirements for trades using proceeds from sales under the early pay-in (EPI) mechanism, with clearing corporations barred from collecting margin on subsequent client positions up to the accepted EPI value. Key numbers: Provisions take effect four months from issuance, with a scheduled Why it matters: The waiver eases margin-funding requirements and reduces the need for brokers to use their own funds to provide margin, while normal margin requirements and risk controls continue to apply where the relief does not cover them.

Sebi issued a circular waiving margin requirements for trades using proceeds from sales under the early pay-in (EPI) mechanism, with clearing corporations barred from collecting margin on subsequent client positions up to the accepted EPI value.

The waiver eases margin-funding requirements and reduces the need for brokers to use their own funds to provide margin, while normal margin requirements and risk controls continue to apply where the relief does not cover them.