New margin norms weigh on volumes, brokers estimate 10-15% impact

Industry players say biggest impact could be on derivative futures volume followed by cash market volumes

The 75 per cent peak margin norms came into effect from Tuesday. The broking industry expects 10-15 per cent hit on volumes are leveraged bets in the system will reduce significantly on account of the new norms. Industry players say the biggest impact could be felt on derivative futures volume followed by cash market volumes. They say traders could shift to riskier options trading.

The norms are being implemented in phases starting December 2020. Between December 2020 and February 2021, traders were supposed to maintain at least 25 per cent of the peak margin. This margin was raised to 50