NSE Changes Margin Trading Rules | New Collateral Rules Explained | Stock Market News India
The NSE has changed the rules for margin trading. New rules for keeping securities as collateral have now been implemented. These new rules will affect all those who trade in derivatives and pledge securities to adjust their margin.
Starting from August 1, 2024, NSE Clearing Limited will no longer accept securities with low trading activity or high impact cost as collateral. As a result, out of 1,730 eligible securities, 1,010 securities will be removed. This means that F&O and intraday traders will now have a limited number of securities available for collateral.
It is expected that removing many securities from pledging will reduce overall market liquidity. With fewer tradable securities, traders and investors will adjust their positions, which might lead to decreased market volatility in the coming times.
This step by NSE can be seen as an effort to enhance market integrity and reduce the risks associated with securities having low trading activity. Initially, this move might face some resistance, but in the long term, it is hoped to improve market stability and confidence. For more Stock Market India & NSE News, Subscribe to Planify! If you're interested in buying NSE Unlisted Shares, you can connect with Planify @ 7065560002.
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