@siva Para(5) of Part A has this limitation:
Equity shares with impact cost of upto 0.1% for an order value of Rupees 1 lakh and traded for at least 99% of days over the period of previous 6 months
But silvercase is not equity AFAIK. So, shouldn’t the next condition apply:
Units of mutual fund schemes otherthan those listed under cash equivalents
Which has no such limitation.
Hi, this is due to new regulatory norms which have come into place which require any security to have been in existence for more than 6 months, and impact cost of 0.1% and traded frequency of more than 99%. Rgds
@VishalJain In part (5) of this link SEBI | Norms for acceptable collaterals and exposure of Clearing Corporations it says this about “equity”. But silvercase isn’t equity right? Shouldn’t it come under the next section:
Units of mutual fund schemes otherthan those listed under cash equivalents
Yes, but all ETFs trade in the “EQ” segment of the exchanges so the norms are being applied. Rgds
Let’s say on Monday, I bought Option ( NRML ) using the collateral worth Rs 2 Lakh ( My cash went negative on the ledger by Rs 2 Lakh
For the questions below, on Tuesday balance was shown as below
cash balance= -200000 (Opening balance Rs -200000 )
pledged liquidbees=10 L
pledged Equity=10 L,
If I want to use the collateral for the Option selling / Future trading to hedge the position, Should i need to clear the negative Rs 2 lakh first or i can still place the order for Option selling only?
Right now, you need to clear any negative balance before placing option short or futures orders.
We’re bringing the same rule that already applies to option longs, you’ll be allowed to place orders even with a negative balance for up to four consecutive days.
This should go live within a week, so you’ll soon be able to place orders despite a negative balance.