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

How is the eligible trading limit calculated against collateral deposited under 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



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