SEBI’s New Margin Rules Protect Trading Ecosystem, Says Zerodha’s Nithin Kamath

SEBI’s new margin trading rules protect the entire ecosystem in the long run, according Nithin Kamath, co-founder of Zerodha, India's largest broker.

Directly pledging stocks from the client's demat account to the Clearing Corporation is a much easier process and safer for the customer, Kamath said. "There is one additional step of moving the security manually from your account and pledging it to the clearing corporation, but people have made peace with it."

Upfront margin requirement to buy or sell stocks, on the other hand, could change life significantly, he said, "Especially for people who have built businesses based on relationships where they have collected funds after the purchase of stocks or collected stocks after the stocks are sold."

Watch the full conversation here: