The Securities and Exchange Board of India (SEBI) on Wednesday said new rules designed to reduce risks in margin trading will roll out on August 1 as planned, but the old system will run in parallel till August-end, in a partial relief for brokers who had protested against them.
Brokers had made five representations to the market regulator and the finance ministry, highlighting practical difficulties in implementing the new norms announced in February.
Earlier, a trader could utilize his shares as margins by giving a power of attorney (PoA) to his broker. But, beginning 1 August, he would be required to pledge them with the broker to use them as margin.
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