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What is Equity Plus / Margin Funding ?

Published: Sunday, 18 October 2020

Equity Plus allows you to buy more stocks in delivery than you’d normally be able to with the same amount of cash in your trading account.

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Before enabling Equity Plus for your account there are few details which you need to know:

 

  • Margin required / Exposure limits:  EquityPlus will enable you to get a higher exposure for delivery. You can buy delivery up to 4 times your cash balance. For example, if you have 1 lac in your account you can still buy stocks up to 4 lacs.
  • Securities that can be purchased in Equity Plus: SAS publishes a List of securities available for trading under this product. SAS may add or delete securities to this list based on market conditions. Clients shall be required to square off immediately existing open positions if any deletion of stock takes place.
  • Delayed Payment Charges:  These charges will be applicable at 0.05% per day on the total ledger debit. If there is no ledger debit at the end of the day, no interest will be charged.
  • Trading Platform: It will be available for all ALPHA platforms (Desktop, Mobile, and Browser) and NEST (Desktop).
  • Min balance and Maximum Limit: To avail EquityPlus, your ledger balance must be a minimum of Rs 50,000. The maximum available funding per client has been limited to 50 lac. EquityPlus is all about leverage and leverage is a double-edged sword, amplifying profits & losses to the same degree, resulting in huge losses if the market moves against expectations. By putting these limits our intention is to protect our clients from any unintentional risk.
  • Subscription charges: There will be an auto-renewal annual subscription fee of Rs 999 + GST @ 18% in order to enable this service.
  • Product type to be chosen for placing the order: The order will have to be placed with the product type NRML and squared off as CNC. Shares bought with product type MIS or CNC can be converted into NRML on the same day itself and vice versa. 
  • Corporate Action: In case of any corporate action in the stocks bought in NRML the corporate action benefits (except rights issue) will be transferred to your account. In case of a bonus/split, the additional shares will be delivered to your holdings which you can sell in CNC to release the margin blocked.  
  • Risk Square-off: The client would be required to deposit additional margin to the trading account in case there is a fall in the market value of the portfolio. The client would be required to top up by either transferring funds or reducing holding in Equity Plus when Equity Plus Actual Cash vs Share %  goes below 20 %. South Asian Stocks Ltd. reserves the right to liquidate client positions with or without notice in any case if Equity Plus Actual Cash vs Share %  goes below 20%. 

Further, Client shall receive all confirmation of orders/trades, margin calls, decision to liquidate the position/security on registered mail Id.

MTF Policy: As per circular all collateral stock and the funded stock would be required to be held by way of margin pledge in your DP account itself, for the pledging process and SAS MTF (Margin Trading Funding) policy kindly refer to this Link.
Note: Pledge and Unpledged Charge of ( Rs.25 plus + GST ) per script is applicable.  

To activate Equity Plus, kindly send confirmation at support@sasonline.in through your registered email id.


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