All investors trading in Futures & Options will have to show 50 percent margin money first
Another worldwide stock market is shaken due to Russia’s attack on Ukraine situation. At the same time, a new rule is going to be implemented in India from February 28. According to which the cash margin in the stock market will now be 50 percent. The decision has been taken to reduce the risk factor on the derivatives platform. As per the rules of market regulator SEBI, from now on all investors trading in futures and options will have to show 50 percent margin money first. Earlier, clients were allowed to trade without cash margin.
According to experts, due to this new decision of SEBI, there will be a big impact on the overall volume of the market. According to him, this decision will move retail investors away from the futures and options segment. According to senior executives of some leading brokerage houses, the new rules will not only reduce the risk, but also reduce the liquidity.
Earlier, SEBI was supposed to bring this decision on December 1, 2021, although it will now be implemented from February 28. Due to which brokerage firms got a lot of time. Due to the new rules, people have also suggested SEBI to keep the lot size low in the futures and options segment. Whose six retail investors can invest in it, let us tell you that many brokerage houses have started taking more margin from the traders.