How is the eligible trading limit calculated against collateral deposited under Margin Pledge?

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Margin Pledge

For the purpose of Limit calculation, securities are valued at the previous day’s closing price after applying the applicable haircut. The haircut % for all eligible stocks can be checked on here

For Example, if 100 shares of ABC are provided as collateral and closing price of ABC is say Rs.1000 & haircut % is defined in system is 65%, then the limits provided will be calculated as under:

Market value of shares to be provided as collateral= (price x quantity) Rs.1000 * 100 = Rs. 1,00,000.

Applicable hair cut for Axis Bank = 65%.

Limits available from the above deposited collateral = Valuation *Haircut% = 1,00,000 * 65% = Rs.65,000