Collateral margin on mutual funds

after this new rule from sebi stipulating 50% cash needs to be maintained to use collateral margin, i have one simple query - can we use the whole collateral amount on intraday basis?

thanks and regards


@nithin @siva0

At Zerodha, you can continue using the entire collateral margin (without cash) for intraday and overnight positions. Nothing changes. But like before, if 50% of the margin isn’t available as cash, you will use our capital, for which we will charge 0.035% daily.

For intraday, currently, there isn’t any charge as such. But we will probably introduce something as customers using our capital increases our working capital requirement.

thanks for the reply sir, is it something exclusive which is only offered by zerodha or every broker is allowed to do so considering how deep their pockets are

To fund the customer, the broker needs to have their own capital. So based on how deep the pockets are with respect to the size of the business, brokers can offer this.

Btw on this topic:

sir, i am using fyers because of brokerage refund, looks like they are not keen in providing collateral margin on intraday basis as well, if that happens, you will earn a new customer

thanks and regards