SEBI’s 22 October circular provides real-time trading-member and clearing-member margin relief on subsequent cash-segment buy and sell positions on the same trade date when a client has a net sell obligation and the clearing corporation has accepted early pay-in of the sold securities. The provisions take effect four months after issuance.[1]
At a glance01
How the margin relief works
| Step | Rule |
|---|---|
| Accepted value | Lower of early-pay-in value and value of securities soldSource 1 |
| Subsequent positions | Subsequent cash-segment positions on the same trade date, up to the available accepted valueSource 1 |
| Reversal of the original sale | Remove the early-pay-in benefit; block any resulting client-level shortfall from member proprietary collateralSource 1 |
| Trade-for-trade securities | The paragraph 4.3 reversal condition does not apply because settlement is grossSource 1 |
| Member risk controls | Allow square-off or new positions only when requisite client margins are availableSource 1 |
The relief changes how accepted securities value supports clearing margin. It does not create unrestricted margin-free trading or release the member from checking the client’s available collateral.[1]
Sources & further reading
- Margin waiver after early pay-in in the cash segment, 22 October 2026 SEBI · Accessed 26 Oct 2026