75% upfront margin from today: Margin bit high, market will take time to adjust to it, says Anil Singhvi

Zee Business Managing Editor Anil Singhvi on Tuesday said that he is not Bullish on midcap and small cap shares as upfront margin has been increased to 75% from today.  He said markets will take some time to adjust to this move.  

Singhvi said that 75% upfront margin is pretty high and it is difficult to figure out the exact margin required for the traders. SEBI will not allow that additional levy to the traders via Brokers. This will ensure that the traders will not be able to take extraordinary positions in the market.  

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Singhvi said that it will important to monitor the volumes in the market for next 5 to 7 business days. He explained that trades F&O space will see bigger problems that trade in Cash Markets. Peak Margins, Mark to Market calculations and many other requirements will have to be fulfilled by the brokers and their clients. Singhvi said these will impact the liquidity issues. He said markets will become little shallow and the volumes will reduce. The impact cast will increase a bit, says Singhvi.  

आज से ट्रेडिंग के लिए देना होगा 75% अपफ्रंट मार्जिन...

अनिल सिंघवी- बाजार पर नए नियम का असर होगा... अब लोग संभलकर ट्रेड करेंगे...

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— Zee Business (@ZeeBusiness) June 1, 2021

Singhvi said that market will take some time to adjust to these new requirements. Singhvi said while markets have adjusted to the peak margin during the first 2 phases, this time also markets will adjust.