The Securities and Exchange Board of India (SEBI) issued a circular on 22 October 2026 to change how margins are collected in the cash segment. For clients who have successfully completed an Early Pay-In (EPI) of securities for a sale, Clearing Corporations will not collect margins on subsequent buy or sell trades up to the value of that EPI. This measure aims to protect investor interests and regulate the securities market. The rules take effect four months after the circular's issuance.
Key points
- Clearing Corporations will waive margins on new positions up to the value of accepted Early Pay-In (EPI).
- Trading Members must ensure clients have required margins before squaring off or taking new positions.
- EPI benefits are removed if a client squares off the original sale position.
- The framework does not apply to Trade for trade (TFT) securities.
- Effective date: four months from the date of issuance.
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 this circular shall come into force
Who it affects
- clients of Trading Members and Clearing Members
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