SEBI Issues Circular Waiving Margin on Cash-Segment Trades After Early Pay-In

Key facts

• The Securities and Exchange Board of India (SEBI) issued Circular No. HO/(320)2026-MRD-POD2/I/24141/2026 on 22 October 2026, titled 'Margin Waiver on Subsequent Buy/Sell Transactions Post Early Pay-In (EPI) in Cash Segment'.
• Clearing corporations will not collect margin from trading/clearing members on a client's subsequent cash-segment buy or sell positions up to the value of Early Pay-In accepted by the clearing corporation, on a real-time basis.
• The circular takes effect on 22 February 2027, four months from the date of issuance.
• The available EPI value is computed as the lower of the EPI value done or the value of securities sold, calculated by the clearing corporation on the trade date upon accepting the EPI request.
• If a client squares off the sale position for which the EPI benefit was availed, the EPI value is removed and any margin shortfall is blocked from the trading/clearing member's proprietary collateral; trade-for-trade securities are exempt from this clawback.
• The waiver applies only to cash-segment positions, not derivatives, and follows proposals from the Brokers' Industry Standards Forum and deliberations by SEBI's Risk Management Review Committee.
• The circular was issued under Section 11(1) of the SEBI Act, 1992 read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, and is addressed to stock exchanges, clearing corporations, depositories and stock brokers.