Sorry for disturbing
Required Amount 700000
Sir actually i’m using ( 450000 as collateral margin + 250000 as cash )
Sir can you please confirm exact amount on which interest will be charged
Total margin requirement: 700k
At 50:50, maximum collateral margin you can use: 350k
Collateral margin you are using: 450k
Excess: 100k (450k - 350k)
Suppose I’ve pledged margin in my account, both cash & non-cash component. Then the order in which margin gets utilized is non cash first, then cash component, and then the actual cash, right?
As an example, suppose I’ve 20L worth of margin in my account, 5L from pledged nifty bees, 10L from pledged liquid fund, and 5L actual cash. Then suppose I take overnight position worth 12L. So, here the utilization process will be 5L from pledged nifty bees + 7L from from pledged liquid funds, and 8L will be left (3L liquid fund + 5L cash). @ShubhS9, is my thinking right here?
When you take position, margin blocked will be from the collateral margin you have. Your free cash will remain available for you to utilise elsewhere.
Duh. Yes, I understand that free cash will get utilized last. What I wanted to know was if we have both type of collateral margin (cash/non-cash), which will get utilized first? I’m presuming it’s non-cash, but want to confirm it once.
Suppose I’ve 20L worth of margin, of which 10L is from liquid fund (cash), 8L from nifty bees (non-cash) & 2L as cash.
a) Scenario 1 (liquid fund utilized first): I take 10L worth of overnight position, which utilizes 10L of liquid fund. Then I’ve 8L of non-cash component & 2L cash left. Suppose now I want to take 8L worth more of overnight position, this wouldn’t be possible since the non-cash component requires 50% cash or cash equivalent, so only 4L worth of overnight position is possible.
Total overnight position: 14L
b) Scenario 2 (non-cash gets utilized first): I again take 10L worth of overnight position, this would utilize 5L non-cash and 5L liquid fund. 5L liquid fund, 3L non-cash, and 2L cash left. After that if I want to take 8L worth more of overnight position, I can do so with the help of 3L non-cash component & 5L liquid fund. And 2L free cash will be left.
Total overnight position: 18L
So, as you can see, both scenarios give different amount of margin. Scenario 2 is what will happen I guess, but want to confirm it once…
To take a position there is no difference between cash collateral and stock collateral.
Nothing like that, you can take anything upto 20 lakhs as you already got 50% in cash collateral.
Yeah.
Also you should note cash collateral and stock collateral comes only for reporting but not for taking position.
The amount we get after pledging allow us to sell options. But if we want to sell option and also to hedge them we want to add some buying option position .
Can we do this ?
Yes. But buying options requires cash. Can’t use collateral for that.
Can we use pledged share of liquidbees for buying option because it is also considered as cash.
No. Buying options has to be cash, not cash collateral.
What happen to my Pledged Securities ?
If my Broker Ran Away ?
Can I get them from CDSL ?
Under the new pledging system, the securities you pledge stay in your Demat account.
So, in case of liquidbees, let say my available liquidbees amount after haircut is 10,00,000/-. I pledge it. I have to take F&O overnight short position. Given my total margin requirement: 10L. Will there be interest charged for any excess amount ?
As LiquidBees is considered as cash equivalent, your entire margin can come from this. There won’t be any interest.
What If I Pledged My Mutual Fund and I’m on SIP Cycle .
Charges for pledging are per pledge request, if you want to pledge the units you’ve recently invested in, charges will be applicable.
Isn’t the pledge for the fund as a whole? If one has a sip, those units that are added to the fund, dont they get included in the original pledge?
Thank you @ShubhS9. Pretty helpful comments on collateral and cash or equivalent. Also the interest rates. 
No you specifically mention the number of units you want to pledge at the beginning, which doesn’t change on its own.