Can you briefly tell me about the new 100% peak margin system?

Effective, 01 September, the fourth and final phase of peak margining system has been implemented with 100% peak margin requirement. The 100% peak margin has 2 major implications. Going ahead, the full margin applicable for a cash or F&O position has to be collected upfront. Brokers can no longer do intraday funding of traders and trades executed without full 100% margins upfront will attract stiff penalties for brokers and customers.

The calculation of peak margins will be something like this. The exchange will take snapshots four times during the day and highest applicable margin will be peak margins of which 100% must be collected upfront. There is one more important change. Even when you sell shares from demat account, traders need to maintain 100% peak margins for one day, unless you are willing to do an advance pay-in online to the depository.