Fintech News · 26 October 2026 · 3 min read
In short: SEBI has issued a framework under which clearing corporations will not collect margin on a client’s later cash-segment trades, up to the value of shares already handed over through early pay-in (EPI). The circular was issued on 22 October 2026 and the change applies from 22 February 2027, about four months later.
What is early pay-in?
When you sell shares, the exchange’s clearing corporation normally takes them from your demat account at settlement. Early pay-in means the shares are moved to the clearing corporation before settlement, right after you sell. Because the clearing corporation already holds the shares, the risk of you failing to deliver is gone.
Today, even after early pay-in, brokers may have to block margin when you take a fresh position the same day. The new rule lets that delivered value count instead.
How the new rule works
| Point | What SEBI says |
|---|---|
| Who it covers | Clients with a net sell obligation whose EPI request has been accepted |
| Waiver limit | The lower of the EPI value and the value of shares sold |
| Which trades | Further buy or sell positions in the equity cash segment |
| Not covered | Trade-for-trade (T2T) securities, which settle on a gross basis |
| If you square off the sale | The EPI benefit is removed; any shortfall is blocked from the broker’s own collateral |
| Start date | 22 February 2027 |
What it means for you
- If you sell shares and buy others on the same day, less of your cash may get locked as margin, once your broker adopts the change.
- Nothing changes for you right now. Clearing corporations and brokers first have to update their rules and systems.
- Brokers must still make sure required margin is available before you take a new position, so you may see checks or pop-ups in your trading app.
- Margin rules affect how much money is blocked, not your profit or loss. Trading more because margin is freed up also raises your risk.
New to the share market? Start with our beginner guides on Koshfin Learn. For SEBI’s other recent change on AI use by brokers, read our earlier report.
Sources
- Business Today: Sebi introduces margin waiver for clients after Early Pay In of shares
- The Hans India: SEBI eases margin rules for investors using early pay-in facility
This is a news summary for education, not investment advice. Figures are as reported on or before 26 October 2026; check official sources before making decisions.