SEBI: Big news for those investing in the stock market - new rules came into effect as soon as the market closed:

News Topical,Digital Desk : Market regulator SEBI has changed the rules for margin collection for brokers and clients working in the stock market. According to the new rules, now it will be necessary to collect the above margin (margin other than VaR and ELM) by the settlement day. Earlier, brokers used to get time till T+2 day to collect the remaining margin (except VaR and ELM) from the clients. Now because the settlement cycle for all the shares in the market has become T+1, SEBI has changed the rule and said that all the remaining margins will have to be collected from the clients by the day of settlement, that is, the entire margin should be received by the day the transaction of shares is completed.

On which margins the rule was already applicable- VaR Margin (Value at Risk), ELM Margin (Extreme Loss Margin). It was always mandatory to pay both of these before the trade. There has been no change in this.

SEBI's new margin rules (2025)- What are the new rules for margin recovery now? VaR and ELM Margin: Must be paid before the trade. (Already applicable). Other Margins: Now it is necessary to deposit it by settlement day (T+1).

What were the old rules- Brokers used to get T+2 days to collect the remaining margin. If the margin is not paid on time, then if the payment and share transfer is not done by the settlement day, a penalty will be imposed.

Why was the change necessary?- To reduce market risk. To align with the T+1 settlement cycle. To protect the interests of investors. Now it is mandatory to pay all the necessary margins by the settlement day while trading.

If the rules are not followed- If both the money and the shares are paid in by the settlement day, then no penalty will have to be faced. If the pay-in does not happen and the broker does not collect the remaining margin from the client, then a penalty will be imposed.

Why the change was made- To reduce the risk in the market. To make the entire system more robust and timely according to the T+1 settlement system. To protect the interests of investors.

When will it be implemented- This rule has come into effect as soon as the circular was issued - that is, from 28 April 2025. Now the investors and brokers doing trading will have to pay all the margin by the day of settlement, otherwise they will have to pay a penalty.