Thread by @iManasArora

You thinking you can’t do BTST anymore? WRONG!

You just need some extra money (if you wish to continue to work smoothly for next T + 3 days)
Or
If no spare funds, then wait for T+2 days for partial ease of limit and T+3 for full limit.

P.S: This margin rule is NOT new.

For every scrip, the VAR margin requirement is different (based on scrip’s volatility). It ranges from 20 to 100%. Till today the rule was you needed 75% of VAR in your account before you can place your order.

1/n

For example, VAR margin for SRF is 25% up front and for HAPPSTMNDS it is 100%.

To buy SRF, you needed 75% of 25%(VAR) of total order value, for the order to go. Some small brokers may allow your order even otherwise, but you will be charged 1% penalty.

2/n

Now, If you wish to sell SRF the next day, another 75% of 25% of the sell order value should be there in your account for your order to go. (In the form of cash or pledged stocks)

3/n

75% of 25% blocked on Monday will be released by Wednesday evening (T+2) and the one blocked on Tue will be released on Thursday evening (again T+2)

4/n

This margin rule was launched in a phased manner last year and is NOT new. The only real news is margin collection requirement has gone up from 75% to 100%

That’s it.