What happened
SEBI issued Circular HO/(320)2026-MRD-POD2/I/24141/2026 on 22 Oct 2026, effective 22 Feb 2027; clearing corporations count the smaller of EPI delivered and value sold as the accepted EPI value on the trade day.
Why it matters
Cash-segment traders hold a defined margin-relief buffer on subsequent buy or sell trades up to the accepted EPI value, while brokers gain a four-month window to retrofit risk-management systems.
Remember this
From Feb 22, 2027, EPI value counts toward subsequent cash-segment margin under a new SEBI rule.
More context & who is affected
SEBI has signalled a fresh margin-waiver route for cash-segment traders. Circular HO/(320)2026-MRD-POD2/I/24141/2026, issued 22 Oct 2026, takes effect 22 Feb 2027 after a four-month implementation window for exchanges and their clearinghouses.
From that date, the accepted EPI value counts against subsequent buy or sell positions only when a client carries a net sell obligation in settlement. Under the revision, clearing corporations take the smaller of the EPI delivered and the value of securities sold and pass that figure on as a margin offset.
If a client reverses the sale against which the benefit was given, the offset is withdrawn and any client-level shortfall is blocked from the TM/CM's own collateral; trade-for-trade securities are outside that clawback. SEBI also requires brokers to gate fresh and closing trades on live client margin.
- Effective from
- 22 Feb 2027 Four months after the 22 Oct 2026 circular, giving brokers and clearing corporations time to upgrade systems and client-facing rules.The HinduNiftyTrader
- Accepted EPI value
- min(EPI delivered, value sold) Computed by the clearing corporation on the trade day; caps the margin benefit at the value supported by the securities actually sold.The HinduNiftyTrader
- Worked example
- Rs 80,000 If a client sells securities worth Rs 1 lakh and the clearing corporation accepts Rs 80,000 of EPI, the eligible EPI value is Rs 80,000.NiftyTrader
Timeline
- 22 Oct 2026 — SEBI issues Circular HO/(320)2026-MRD-POD2/I/24141/2026 through its Market Regulation Department.
- 22 Feb 2027 — Revised EPI margin framework takes effect; brokers must have updated risk-management systems in place.
- On each trade day from then — Clearing corporations compute the accepted EPI value and pass the offset to brokers.
Traders · Retail Investors
Cash-segment traders keep EPI-backed margin relief on follow-up trades; accepted EPI value is now capped at the smaller of EPI done and value sold.
Brokers And Dealers · Compliance Officers
Brokers must strengthen risk-management systems and update client-facing rules before the 22 Feb 2027 effective date.
Traders · Retail Investors
Reversing an EPI-backed sale triggers clawback of the benefit and blocks the shortfall from TM/CM proprietary collateral.
Reporting fromThe Hindu ↗NiftyTrader ↗
Sources & verification2 sources · 4 claims
These are the records behind this briefing. Linked reporting is not the same as independent confirmation.
- The HinduReporting
SEBI eases margin rules for early share delivery; EPI value to be calculated on trade day ↗
Published Oct 22, 2026 · Accessed Oct 22, 2026 - NiftyTraderReporting
SEBI Eases EPI Margin Rules for Cash-Market Trades From February 22 ↗
Published Oct 22, 2026 · Accessed Oct 22, 2026
Claims and linked sources
SEBI issued Circular HO/(320)2026-MRD-POD2/I/24141/2026 on 22 Oct 2026 through its Market Regulation Department.
The revised EPI margin framework comes into force on 22 Feb 2027, giving brokers and clearing corporations a four-month implementation window.
Clearing corporations compute the accepted EPI value as the smaller of the EPI delivered and the value of securities sold on the day of the sale.
SEBI directed brokers to update risk-management systems and gate fresh or closing trades on client-level margin, and to revise client-facing rules before the framework takes effect.
