Do I need to maintain 50% ratio in the form of cash or cash equivalent collateral?

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• What happens if I don't maintain the required cash component?

  In case of deficiency in the cash components, interest will be levied at the rate of 1% per month for shortfall amount. It's important to maintain the required cash components to avoid incurring these charges.

• Is there any flexibility in the cash component requirement?

  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 ...

• Can I still use non-cash components for margin?

  Yes, you can still use non-cash collateral such as stocks and securities for margin. However, a minimum of 50% of the margin must be maintained in the form of cash component.

• Can I use the full margin of cash components?

  The collateral margin received by pledging cash component securities can be used fully towards any margin requirement for your open positions. There is no requirement to maintain cash separately if the margin requirement is covered by collateral from ...

• What are cash components?

  Cash component is the margin which is considered as a cash or cash equivalent. Examples: Cash transferred from your Bank LIQUIDBEES ( NIP IND ETF LIQUID BEES ) ICICILIQ ( ICICIPRAMC - ICICILIQ ) LICNETFGSC ( LICNAMC - LICNMFET ) LIQUIDETF (DSPAMC - ...