130Views
If a client provides 100% margin only in non-cash then how will the broker fund the position and collect DPC on the funded portion?
As per SEBI guidelines, clients must maintain at least 50% of the total margin in cash or cash equivalents. The remaining 50% can be met through approved non-cash collateral such as stocks, mutual funds, Liquid Bees, or other eligible securities.
If the required 50:50 cash-to-collateral ratio is not met, Torus Digital reserves the right to charge interest on the shortfall. If a client provides 100% margin in non-cash form, only 50% will be considered towards the margin requirement. The remaining 50% must be funded by the client in cash, or the broker will fund it on the client’s behalf and charge applicable interest.
Example:
You want to sell a Nifty Call Option that requires a margin of ₹1,00,000. You have no cash but ₹1,00,000 worth of approved collateral in your account. Since a 50:50 cash-to-collateral ratio is required, only ₹50,000 of your collateral can be used. The remaining ₹50,000 is funded by the broker. You’ll be charged interest only on the funded ₹50,000, not on the portion covered by your collateral. You will be charged interest as per 0.04% daily for 30 days would be ₹600 (i.e., ₹50,000 × 0.04% = 20 × 30 Days = ₹600).
If the required 50:50 cash-to-collateral ratio is not met, Torus Digital reserves the right to charge interest on the shortfall. If a client provides 100% margin in non-cash form, only 50% will be considered towards the margin requirement. The remaining 50% must be funded by the client in cash, or the broker will fund it on the client’s behalf and charge applicable interest.
Example:
You want to sell a Nifty Call Option that requires a margin of ₹1,00,000. You have no cash but ₹1,00,000 worth of approved collateral in your account. Since a 50:50 cash-to-collateral ratio is required, only ₹50,000 of your collateral can be used. The remaining ₹50,000 is funded by the broker. You’ll be charged interest only on the funded ₹50,000, not on the portion covered by your collateral. You will be charged interest as per 0.04% daily for 30 days would be ₹600 (i.e., ₹50,000 × 0.04% = 20 × 30 Days = ₹600).
Last updated: 4 Months Ago
130Views
Stocks
How to transfer shares from other DP to Torus DP- How to place buy or sell order?
- How to modify order?
- How much leverage is provided for Intraday orders?
- How can I convert my order from Intraday to Delivery?
- How to create a Watchlist?
- Why has the order placed not executed?
- Can I place AMO Orders in Intraday?
- What happens if I don't square off my intraday positions ?
- Can I place Intraday Orders in pre-open session?
