Latest news & updates from us
SEBI has come out with Segregation of collateral at client level to minimize risk with respect to client funds lying with the Broker.
Circular calls for "Reporting of Client funds" ( collateral ) and allocation of collateral to the client on a daily basis which brokers have started doing from Dec 15th. Further clients are required to maintain minimum 50% collateral in the form of cash when availing margin benefit against shares pledged in their depositories or the same would be adjusted from brokers proprietary capital. Please go through circular for more details
Requirement of minimum 50% collateral in form of Liquid Cash or cash equivalent collateral for Stock Plus Clients.
From Feb 28th, 2022 Stock + clients are now required to maintain a minimum 50% of the total collateral in the form of cash(Liquid Cash or cash equivalent collateral). If margin is utilized and 50:50 cash (Liquid Cash or cash equivalent collateral) vs collateral ratio not maintained then late payment charges @ 18% per annum would be applicable on the shortage amount of cash calculated on day to day basis
Example
Say you have a cash margin of 50,000 and shares worth 2 lac. Considering a haircut of 25% the collateral value comes out to be 1.5 lac. If you use 1 lac total margin ( 50,000 cash + 50,000 collateral ) 50:50 cash vs collateral criterion is fulfilled. If you use margin beyond that then Interest would be applicable on only cash amount that is short in order to meet the 50:50 cash vs collateral ratio
Check out ET coverage on this here
Daily Expiry Decoding: Impact on Traders
19 September 2023
Can AI trading systems beat human traders?
14 August 2023
ASBA like facility for Secondary Market - A Game Changer for Indian Stock Market
21 July 2023
Simply fill the details, connect your bank account & upload your documents.
Open An Account
Post a comment