The Securities and Exchange Board of India (SEBI) issued a circular on 22 October 2026 to ease margin requirements for clients who use Early Pay-In (EPI) for selling shares. Under this rule, Clearing Corporations will not collect margins on a client's subsequent buy or sell trades up to the value of the accepted EPI. This facility is designed to provide liquidity based on securities already pledged for settlement. The provisions will take effect four months after the circular's issuance.
Key points
- CCs will waive margins on subsequent trades up to the value of accepted Early Pay-In (EPI).
- Trading Members must ensure clients have requisite margins before squaring off or taking new positions.
- EPI benefits are removed if a client squares off the original sale position.
- The rule does not apply to Trade for trade (TFT) securities.
- Effective date: four months from 22 October 2026.
When it applies
Counted from date of issuance of this circular, dated 22 October 2026.
- Four months from the date of issuance of this circular provisions of the circular come into force
Who it affects
- clients with net sell obligations in a settlement
Refers to
- Section 11(1) of the Securities and Exchange Board of India Act, 1992
- Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018