If you invest or trade in the stock market then this news is very important for you. Market regulator SEBI has made a big change regarding margin recovery. These new rules have come into effect from 28 April 2025.

If you invest or trade in the stock market then this news is very important for you. Market regulator SEBI has made a big change regarding margin recovery. These new rules have come into effect from 28 April 2025. If these rules are not followed now, then you may have to face a penalty.

Now till when will we have to pay the full margin?

Earlier, brokers used to get time till T+2 day i.e. two days after trading to collect the remaining margin (except VaR and ELM) from the clients. But now this rule has changed. Now brokers will have to collect all the margin by the settlement day (T+1). That means, all the necessary payments will have to be completed by the day the transaction of shares is completed.

On which margins was the rule already applicable?

• VaR Margin (Value at Risk)  and
• ELM Margin (Extreme Loss Margin)
• Both of these were already required to be paid before the trade. There has been no change in these rules. Changes have been made only in the rules for recovery of other margins.

What are the new rules of SEBI?

• VaR and ELM Margin: Required to be paid before the trade (same as before)
• Rest of the Margins : Now it is mandatory to collect it by settlement day i.e. T+1 day

What were the old rules like?

• Brokers were given up to T+2 day to recover the remaining margin.
• Now full payment has been made mandatory only by T+1 day i.e. the day of settlement.

Why was the change made?

SEBI has changed this rule for some main reasons:

• to reduce risk in the market
• To improve the T+1 settlement cycle
• To protect the interests of investors

Due to these changes, the stock market will now be able to operate in a more secure and timely manner.

What will happen if the rules are not followed?

If the pay-in of both the money and the shares  is completed by the settlement day,  then you will not be charged any penalty.

But if the remaining margin is not recovered from the client by the settlement day and the pay-in is also not completed, then the broker will have to pay a penalty.

When did the new rule come into effect?

According to SEBI, this new rule has come into effect from 28 April 2025. That is, from now on, all the investors and brokers in the market will have to settle all the necessary payments by T+1 day with full vigilance.

PC:Punjab Kesari