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SEBI Margin Collection Rule: Brokers Must Collect by T+1

29 April 20251 min read
BANKING & FINANCESEBI MarginCollection Rule:Brokers MustCollect by T+129 April 2025safalsetu.com

Why in the news

SEBI set a new deadline for margin collection to match the faster T+1 settlement cycle.

Key facts

  • Applies to the equity cash segment; VaR and ELM are outside it.
  • T+1 replaced T+2 and was fully implemented in January 2023.

Impact

  • Brokers: adapt systems and avoid penalties.
  • Investors: keep funds or securities ready by T+1, with less buffer time.

Exam angle

  • Regulator: SEBI; aim: timely risk management, margin discipline.

Test yourself

1. By when must stock brokers collect client margins in the cash segment under SEBI's revised norms?

Margins must be collected by the settlement day, T+1.

2. Which two margins are excluded from SEBI's revised margin collection timeline?

VaR margin and ELM are excluded.

3. SEBI's revised margin norms apply to which segment of the equity market?

The directive is for the cash segment.