Sebi's new margin norms will be painful for investors, market participants

Come September 1, stockbrokers will have to report the upfront margin collected and available with them from their clients

In November 2019, the Securities and Exchange Board of India (SEBI) introduced a framework of margin collection in the cash segment where one needs to pay for the securities purchased within two days to the stockbroker. Till November 2019, the margins from clients were mandatorily required only in the Futures & Options (F&O) segment. For the past several years, these cash margins were not demanded from clients and were borne by their brokers. The market regulator, however, tightened the margins norms due to the misuse of securities by a few unscrupulous brokers in the industry. These new norms also brought