Margin Plus is a value added service that allows you to get exposure/ margin against your shares by pledging them as collateral.
For e.g. - You have Rs. 50000 as cash in your trading account and Rs. 50000 as collateral then total margin available becomes Rs 1 lac.
Before enabling Margin Plus for your account, there are few details which you need to know :
Ø Collateral and Haircut : Collateral is calculated after deducting haircut from the value of the pledged stock.
For e.g. - If value of holding is Rs 1 lac and haircut percentage is 25% then collateral shall be Rs 75000.
Please check the list of stocks along with the haircut percentage that are accepted as collateral from this LINK.
Ø Cash vs Collateral Ratio : To avail collateral benefit against overnight FO positions exchanges stipulate that min 50% of the total margin should be in the form of cash. If you don’t have enough cash, your account will be in debit balance and there will be an interest charge also called delayed payment charges of 0.05% per day applicable on the debit amount. So assume you take positions that require a margin of Rs 1 lakh, you will need at least Rs 50,000 in cash irrespective of how much collateral margin you have. Assuming you don’t have this Rs 50,000, whatever you are short by will be the debit balance for the day, and interest will be applicable for that amount.
Ø Segments and Product Types : You can trade in cash (MIS / NRML / CO) or take Intraday / Carry position in FO ( MIS / NRML / CO / BO) against collateral.
Please note collateral is not considered for option buying in any product or for buying delivery in CNC product type.
Ø Charges : You are required to pay annual subscription fees of Rs. 999 + GST @ 18% to enable Margin Plus facility.
You will be charged Rs.99 + GST @ 18% for each scrip for pledge + un-pledge irrespective of the quantity.
Ø Pledging and Un-pledging : Please click on this LINK to see how you may pledge your holding from Back Office portal (after activation of Margin Plus).
Also you may sell your pledged holdings anytime using CNC product type like you normally do in case of holding in your DP account. In this case, shares will be automatically un-pledged.
# Margin Plus is available for all clients irrespective of brokerage plans and trading platforms . All corporate action against pledged shares would be transferred to you in real time ".
## SAS POA Demat account is mandatory for availing Margin Plus.
To activate Margin Plus facility, kindly send mail at email@example.com through your registered email id.