Peak margin levy will lead to export of business to overseas markets
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Peak margin levy will lead to export of business to overseas markets. Image Source: IANS News
New Delhi, May 24 : Association of National Exchanges Members of India (ANMI) has urged regulatory authorities to reconsider the proposed 100 per cent levy on day trade peak margins as the margin is 300 per cent of what should have been the actual levy.
ANMI has written to the Securities and Exchange Board of India (SEBI), expressing its opinion that there is a great disconnect between what is being collected from clients and what needs to be collected vis-a-vis the attendant risks arising in intraday trades.
Stock brokers association Anmi has urged markets regulator Sebi to reconsider the proposed 100 per cent levy on intra-day trade peak margins, as the higher-margin will reduce hedging opportunities. In a letter to Sebi on May 15, the Association of National Exchanges Members of India (Anmi) said that there is a great disconnect between what is being collected from clients and what needs to be collected vis-a-vis the attendant risks arising in intraday trades. It, however, reiterated that they are not against the collection of intraday margin levied on clients nor the levy of full margin on the clearing member irrespective of the nature of the trade.
Stock brokers’ association Anmi has urged the markets regulator, Securities and Exchange Board of India (Sebi), to reconsider the proposed 100 per cent levy on intra-day trade peak margins, as the higher-margin will reduce hedging opportunities. In a letter to Sebi on May 15, the Association of National Exchanges Members of India (Anmi) said there is a great disconnect between what is being collected from clients and what needs to be collected vis-a-vis the attendant risks arising in intraday trades. It, however, reiterated that brokers are not against the collection of intraday margin levied on clients nor the levy of full margin on the clearing member irrespective of the nature of the trade.
Business from India will move to overseas markets if unwarranted restrictions continue, says ANMI
Alesia Kozik/ Pexels
In a move to help the broking industry, the Association of National Exchanges Members of India (ANMI) has urged Securities and Exchange Board of India (SEBI) to reconsider the proposed 100 per cent levy on day trade peak margins as the margin is 300 per cent of what should have been the actual levy.
ANMI stated nowhere in the world the clients are required to pay upfront peak margins. Already open interest in Nifty is more in Singapore compared to India though it is a product based on Indian stocks. Indian markets are already at a disadvantage compared to SGX in terms of margins, time of trading, transaction cost and taxation. Any further unwarranted restrictions will result in export of business from India to overseas markets.
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