Margin and collateral

Zerodha
1

I have few questions

In T+5 time to make the rest of payment. The stocks are held in unpaid securities demat account. Will the broker use his own money to make the payment to clearing exchange.

When I pledge my stocks to take stocks or position. Is 50% in fno given by broker when through my stocks is given as collateral to clearing exchange or broker need not give 50% from there side because I have 50% collateral and 50% cash.

Under MTF. Even through my stocks are pledge and give as collateral to clearing house. Is broker the one who pays for the margin.

In MIS, even through my stocks are pledge, is broker giving the money from there side.

In traditional brokers, I pledge shares to get margin against securities. Same is repledge with clearing house through CM. Now when I buy shares using the margin, using CNC, is brokers giving its own money to clearing house and CH sees my pledge margin as collateral.
In my traditional broker, I pledge Lic And buy shares using CNC or NRML. I have 5 days to pay for the securities or pledge it for 90 days MTF. Is broker the one who pays for margin in pledge .

Also if I use payment gateway, money comes next working to broker. So broker use its own funds. But who will it inform exchange money is transferred to client tagged broker demat to exchange so there is no penalty.

Also zerodha, I would be happy if operations of zerodha and demat blogs are made so we have more information .

@nithin
@MohammedFaisal
@VijayNair

Please give information on this

2

@mohitmehra

Could you explain this

3

In MTF, who pays for the delivery?

The broker makes payment on behalf of the client to the clearing corporation. You can think of it as a loan from the broker to you. Only the margin amount is collected from the client.

For a transfer using payment gateway, how will the broker perform allocation?

Although the funds are received the next day, if the broker has adequate capital, they can earmark it as client funds with the exchange. This practice is considered okay since the broker has confirmation from their payment gateway partner that funds have successfully been collected from the client.

4

After new rule of upstreaming of client funds. Will broker give payout on same day as broker is not allowed to keep client funds overnight.

Also are brokers allowed to do inter transfer of funds from broker client account bank accounts