Trading volumes likely to be hit as 75% peak margin kicks in today

Trading volumes can be hit as the 75 per cent peak margins norms come into effect from Tuesday. 

Last year, the markets regulator, Sebi, introduced the so-called peak margin norms in a bid to minimize speculative trading. In simple terms, the leverage brokers can offer to their clients to trade in the cash, as well as the derivatives market has been curtailed. 

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 per cent between March