While the minimum requirement is 50% of the margin, you can choose to maintain a higher percentage of cash component to avoid potential deficiencies and interest charges.
Illustrative table appended below considering various scenarios:
Scenario |
Non-cash collateral |
Cash collateral |
Interest Levied |
A |
100% |
0% |
On 50% of non-cash collateral |
B |
50% |
50% |
NIL (No Interest) |
C |
60% |
40% |
On 10% deficiency of cash collateral |