SEBI allows real-time margin waiver on subsequent cash-segment trades up to the value of early pay-in (EPI), subject to safeguards. Implementation mandated by February 22, 2027.
SEBI Introduces Margin Waiver Post Early Pay-In
SEBI has introduced a new facility permitting stockbrokers to offer real-time margin waivers on cash-segment trades, provided the trades are backed by accepted early pay-in (EPI) values. The framework, announced on October 22, 2026, will be fully operational by February 22, 2027, and applies to clients who deposit securities or funds before the standard pay-in deadline.
The waiver is limited to the real-time accredited value of the EPI and subject to risk controls, including real-time collateral blocking and reversal mechanisms in case of settlement failure. Brokers must ensure that the client’s ledger reflects accurate margin adjustments and that no undue exposure is created due to staggered settlements.
Practical Implication: This reform enhances liquidity efficiency for active traders and reduces cost burdens. Brokers must upgrade their back-end systems to support real-time validation, reconciliation, and reporting to exchanges and depositories.
Citations
- SEBI Circular, October 22, 2026