Today we are going to discuss how the new margin circular from SEBI is going to affect the Retailers.
Until yesterday the trading in the Stock Market is broadly divided into the following categories
1. Intraday
2. Delivery base buying
a. Buy today Sell Tomorrow
.3.Sell today Buy tomorrow
4. Future And Options
Now, let us try to understand how the new margin policy is going to affect these Segment
Intraday: Now most people in the market do trading especially in the Intraday ..Where one needs to sell or buy a stock on the same day and needs to exit their positions by the end of the day. Normally the timings are from 9:15 - 3:15. With the new policy, I really do not see any change to it.
Delivery base buying: Here in DBB One buy's stock and holds it for a period to earn good returns and on another hand, some people want to trade as per speculation i.e they buy stocks on news and sell on the confirmation. Normally this type of trading takes place before a day of results or on any big announcement. At times people would prefer doing exactly the opposite of the above one ..where one sell's a stock today and buy it tomorrow.
Now with the latest Circular from SEBI, that option is completely taken off from the market as one who buys a stock needs to wait at least 2 working days or until the stock is deposited into their Demat account before they take a sell call.
Let's understand this with an example:
Ramesh brought 100 Stocks of Reliance in the market today and wants to sell it tomorrow before the 1st of August 2020 this was possible however now he can not sell it tomorrow, he has to wait T+2 days before putting a sell order in the market.
Same way when someone Sell a stock also needs to wait until the complete amount appears in the trading account.
In short, both the BTST and STBT options are now going to be a part of History now.
The future and Options segment is still going to remain the same.
Conclusion: With this new SEBI Circular the retailers are mostly getting affected as they have to wait at least 2 business days from the time they sold or brought back the stocks. On the other end, even someone wants to sell the holding at a good profit and invest the returns in other good stocks as the Stock Value of the other stock seems to be attracting can not do that on the same day the day he sold his holding.
The other Team that would badly get affected are the brokers who have no online platform, where one needs to do trading with them only by calling them for placing the orders.
According to me, this Policy gives more inconvenience than comfort to the traders.
