Peak Margin – Phase 2 is Here!
From 1st March, 2021, Phase 2 of the Implementation of Peak Margin begins. Let’s see what this means and how it will impact you.
A little background first: SEBI’s new set of guidelines on Peak Margin Collection & Reporting came in to effect from 01-Dec-20. Peak Margin refers to the highest margin requirement of trades done during the day. The roll-out of Peak Margin requirement was to be done in 4 stages. The 1st phase (01-Dec-20 to 28-Feb-21) required an upfront peak margin of 25%. (For more details, refer – Here’s what’s new about Peak Margins)
Phase 2 of the implementation plan begins from 1st March, 2021 whereby minimum 50% of total margin will be required as peak margin for trades done during the day.
Let’s see how this works out with the help of an Example:
WHAT DOES THIS MEAN FOR YOU?
- From 1st March, 2021, 50% of total margin (Peak Margin) will be collected upfront before placing any trade, across all segments.
- To avoid margin shortage penalty, Funds Payout will be done twice during the day – once before equity market opens & once after equity market closes.
How to ensure uninterrupted trading? It’s Simple -
- Keep your Angel Broking account well-funded at all times, and/or
- Pledge your shares lying in your Angel Demat account
Phase 3 of the Peak Margin implementation is planned to begin from 1st June, 2021 – which will further increase the Peak Margin requirement to 75%. More on that, later.
For more details, feel free to visit the below links: