How is the interest calculated?

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• How can I avoid paying interest on cash component deficiency?

  To avoid interest charges, ensure that you maintain the required 50% of the margin as cash component. You can also consider maintaining a higher percentage of cash component to provide a buffer against any potential deficiencies.

• 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 ...

• What are margin pricing?

  Margins Equity Interest on MTF product 15% Interest on margin against collateral for Derivatives 12% Click here to know more

• 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 ...

• 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.