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New peak margin rules kick in; penalty if margin above 25%

Updated : December 01, 2020 03:21 PM IST

New peak margin rules kick in from Tuesday. According the previous margin system, margins were collected upfront, but were calculated on the basis of end-of-day positions.

However, from December 1, the exchange will randomly take snapshots of all margins four times a day and the highest margin out of this will become 'peak margin'. A penalty will be imposed if the margin is over 25 percent.

CNBC-TV18’s Prashant Nair explains; watch the video
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