Indian Stock Market QA Forum

InvestorZclub Academy Students are requested to post questions in comment box. I will try to answer most of them or refer you to the answers I have already given. Students are also requested to help each other and are encouraged to answer questions they know.

Amit Agarwal


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8 comments:

Ashutosh said...

Hello sir the new sebi rules of maintaining the margin can bring some impact or some difficulties for those who are new in share market?

Amit Agarwal said...

No it has no impact for new investors. In fact it is better for all retail investors as lot of loop holes that nasty brokers used to use to dupe investors (ex. karvy fraud case) are now fixed with new rules.

Ashutosh said...

But sir margin maintenance is problem with those investors who enter in a share market with a normal amount ex rs 25000.

Amit Agarwal said...

Margin trading is not good for anyone specially small retail investors. Buy what you can afford. Big accounts don't face such problems as you can buy futures or take other derivative positions assuming you know how to handle leverage. SEBI is watch dog and the job of a regulator is to protect small investor from frauds. I trade fairly large account but havn't faced any such issue.

Ashutosh said...

Sir but i m a new and a small investors in the market and if i want to buy shares in delievery then i also have to maintain 20% of the total share cost in my demat account during buying and selling?

Ashutosh said...

Sir BTST trades are now closed by the sebi and what u think that investors can face some problems without BTST trades.

Amit Agarwal said...

To buy shares in delivery worth say 50000, you must have 50000 in account. If you have shares in demat account already, you can sell whenever you want. You dont need any margin for selling your demat shares. Yes BTST trades are no longer there and SEBi wants to eliminate that trade as it is an age old practice which is not followed anywhere in the world.

In a nutshell, the new margin rules are framed to discourage speculation and encourage genuine buying and selling. New rules are good for us.

Ashutosh said...

Thanks sir ur answers were truley helpful.

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