Here is why investors are facing difficulty in trading on NSE, cant see details of funds today

Amid the implementation of a new circular, investors are facing difficulty while trading on the NSE (National Stock Exchange), Zee Business Special Correspondent Tarun Sharma said in his report quoting sources on Monday. 

He added that the portal is unable to show the details of the fund with the new circular coming into effect from May 02, 2022. 

The Securities and Exchanges Board of India (SEBI) in July 2021 released a circular asking for a margin requirement of 50 per cent from futures and options traders to reduce risks in the system.  

The markets regulator came up with this circular after a reported misuse of client collateral by trading members and the Karvy Stockbroking scam, wherein clients’ shares had been pledged illegally as collateral against a loan. 

Earlier, the implementation of this circular was deferred in February after several requests made by stakeholders to the market regulator. SEBI had postponed the implementation of the framework related to segregation and monitoring of collateral at client level to May 2, 2022. 

It had said in a postponement circular, “Sebi has received requests from various stakeholders to further extend the aforesaid timeline. After consideration of the same, it has been decided that provisions of the said circular dated July 20, 2021 (apart from provisions of Paragraphs 4 and 5) shall come into force with effect from May 02, 2022.” 

The new margin rules saw deadline extensions twice so far, as the rule was first to be implemented on December 1, 2021, which was later postponed to February 28, 2022. However, it eventually got implemented on Monday.