Anmi urges Sebi to reconsider the proposal on 100% levy on peak margin

Sharing its data with the regulator, Anmi pointed out that the rate of overnight margins, levied on intraday trades are almost 3.33x more than what is warranted based on the risks of the trade

Stock brokers’ association Anmi has urged the markets regulator, Securities and Exchange Board of India (Sebi), to reconsider the proposed 100 per cent levy on intra-day trade peak margins, as the higher-margin will reduce hedging opportunities.

In a letter to Sebi on May 15, the Association of National Exchanges Members of India (Anmi) said there is a great disconnect between what is being collected from clients and what needs to be collected vis-a-vis the attendant risks arising in intraday trades.

It, however, reiterated that brokers are not against the collection of intraday margin levied on clients nor the levy of full margin