A question about margin statement showing funds in FNO section

Total funds available 33k and EQ section shows 11k and FNO section shows 22k

I am wondering If a client has not done any transactions in FNO section for about 10 days (no open positions either) why margin statement shows any money in FNO section? I believe all the money should bein EQ section which where all current trades are.

Due to this faulty allocation it is showing shortfall in EQ section and access in FNO section. @Nakul @mohitmehra

Hey @curiousvi, this isn’t “faulty allocation”. I suggest you first go through this support article to understand what the margin statement is and how to interpret it?

As brokers, we are supposed to report segment-wise balances. This means that each segment is treated as a separate ledger in itself. The fund balance in the margin statement is simply the unencumbered ledger balance of the respective segment. Ledger balances don’t change just because you haven’t traded.

Let’s say you transferred Rs. 1L to your account on 1st October 2020 and have not executed any trade. The margin statement on any day from 01st October 2020 will show a fund balance of Rs. +1L in the NSE-EQ segment i.e., the balance of your NSE-EQ segment ledger is Rs. +1L. Now say you took an F&O position worth 80k on 02nd November 2020, the fund balance of NSE-F&O segment will now become Rs. -80k i.e., the ledger balance of NSE-F&O segment is now -80k. The net balance in your account will be +20k. The ledger balance of each of the respective segment i.e., NSE-EQ balance of +1L and NSE-F&O balance of -80k will not change unless you execute any new trades in the respective segments. These balances will continue to show up in the margin statement as it is.

So what happens when we withdraw ? lets say in above example of 1 lac. …now I dont have any FNO position for a week …and I withdraw 50k out of it…so margin statement will show 50% change in all segments?

Nope. Fund payin and payout affect only the balance of the segment from where the transaction is happening. We update the payins and payouts to the NSE-EQ segment balance by default. In your example, say you had 1L balance in the NSE-EQ segment a payout of Rs. 50k will bring the segment’s balance down to 50k. This won’t affect the balances of the other segments. It’ll be easier for you to understand if you refer to the last row of the margin statement, i.e., the sub total row.

Continuing your example, suppose on 3rd November 2020, I closed my F&O position at Rs. 50K realizing the loss of Rs. 30K.

What will be my segment wise balances of NSE-EQ and NSE-FNO in margin statement from next day i.e. 4th November, 2020 onward? Will it be NSE-EQ +1,00,000 AND NSE-FNO -30,000 and net balance of the account +70,000?