SEBI has told clearing corporations not to collect margin on a client's follow-on trades up to the value of securities already delivered early, with the rules taking effect in February 2027.

BulletsIn

• The Securities and Exchange Board of India issued a circular on October 22, 2026 on margin waiver for subsequent buy or sell transactions after early pay-in in the cash segment.
• Clearing corporations will not collect margin from trading and clearing members on a client's subsequent positions, up to the value of accepted early pay-in.
• The facility applies when a client has a net sell obligation in a settlement and the early pay-in request for the securities sold has been accepted.
• The available early pay-in value is the lower of the completed early pay-in value or the value of securities sold.
• If the client reverses the sale, the early pay-in benefit is removed.
• Any resulting shortfall is then blocked from the broker's proprietary collateral.
• The provisions will come into force four months from the date of issue, that is, on February 22, 2027.

Tags: SEBI, EarlyPayIn, MarginWaiver