SEBI (Securities Exchange Board of India) has introduced new margin rules that have garnered mixed reactions from people across financial institutions (mostly negative).
Reports suggest that these new Margin rules are not only problematic for Dalal Street but also for the average investor because he/she will have pay more than they initially did.
This is because, according to the new rules, securities already in a Demat account are no longer sufficient to be pledged as margins, instead not investors will have to bear the direct cord of margins as brokers declare all buy and sell trades upfront. Furthermore, the Title Transfer method that allowed brokers to make trades on behalf of the client will no longer be possible as the Power of Attorney or TT mechanism has been decarded by SEBI.
To make matters worse, the Buy Today Sell Tomorrow pattern of trading has become costlier for the salaried investor as they now have to pay margins twice for the same trade.
While SEBI has taken these steps as a reaction to certain unethical traders and to protect the interests of investors, many are seeing these moves as a further hindrance for the investors.
https://twitter.com/nayanrp/status/1298461968752209920
