New Delhi, Oct. 26 -- The Securities and Exchange Board of India (Sebi) has relaxed margin rules for investors who use proceeds from share sales to buy other stocks on the same day. The new rules aim to reduce brokers' upfront funding burden when investors use proceeds from shares sold through the early pay-in (EPI) mechanism.

Mint explains the changes and whether they will benefit brokers.

In a circular issued on 22 October, India's market regulator eased margin requirements for trades made using proceeds from shares sold through the EPI mechanism. EPI allows investors to transfer shares to the clearing corporation before the usual settlement deadline. Once the clearing corporation accepts the transfer request, the value of those share...