Important Update: Changes to Pay Later (MTF) Margin Requirements Effective October 1, 2024
There is an important regulatory update that will affect Pay Later (MTF) starting from October 1, 2024, following SEBI’s new guidelines.
What’s Changing:
- Increased Margin Requirement
- The margin requirement for stocks in the Futures and Options (FnO) segment is increasing. Previously, the requirement was VaR + 3 times Extreme Loss Margin (ELM), but it will now be VaR + 5 times ELM. This means that higher margins will be needed for both existing and new trades.
- Eligible Securities
- Only Group 1 securities (MTF Eligible Stocks) will be impacted by this consideration.
- Margin Shortfall
- Due to the increased margin requirements, you may encounter a margin shortfall. We recommend reviewing your positions and ensuring that you have sufficient collateral to prevent any margin calls or penalties.
We advise you to take prompt action and maintain sufficient margins to meet the new requirements. If you need assistance or have any questions, please contact our support team.