Before 1st December 2020, brokers could provide higher leverages by offering products like Intraday (MIS), Cover Order (CO) as margins would only be applicable in case a position is carried forward.
However, in the interest of the market and to bring in more stability, SEBI mandated all brokers to collect minimum funds from customers even for the Intraday positions. This means traders can take Intraday positions only after fulfilling this minimum margin requirement. SEBI also asked clearing members and clearing corporations to monitor brokers’ margin activities from 1st December 2020.
The changes as per these guidelines are being rolled out in phases.
In the previous phase which was effective from 1st June 2021, brokers had to collect a minimum of 75% funds on the prescribed limit from customers. And now in the next phase which will be effective from 1st September 2021, brokers have to collect a minimum of 100% funds on the prescribed limit from customers.
You can read more about it here.