Amid the implementation of a new circular, investors are facing difficulties when trading on the NSE (National Stock Exchange), Zee Business Special Correspondent Tarun Sharma said in his report citing sources on Monday .
He added that the portal is unable to show fund details as the new circular comes into effect on 02 May 2022.
The Securities and Exchanges Board of India (SEBI) issued a circular in July 2021 requesting a 50% margin requirement for futures and options traders to reduce risk in the system.
The market regulator proposed the circular after reported misuse of customer collateral by trading members and the Karvy Stockbroking scam, in which customer shares were illegally pledged as collateral for a loan.
— Zee Business (@ZeeBusiness) May 2, 2022
Previously, the implementation of this circular had been postponed in February after several requests from players to the market regulation authority. SEBI had postponed the implementation of the customer-level collateral segregation and monitoring framework to May 2, 2022.
He had said in a postponement circular: “Sebi has received requests from various stakeholders to further extend the aforementioned deadline. After examining it, it was decided that the provisions of the said circular of July 20, 2021 (with the exception of the provisions of paragraphs 4 and 5) will come into force as of May 2, 2022.
The new margin rules have been extended twice so far as the rule was first scheduled to be implemented on December 1, 2021 which was later delayed to February 28, 2022. However, it was eventually implemented Monday.