Quarterly settlement issue

[SachinSingh]

@TheGouda

50% is retained in collateral and remaining upto 175% in cash.

In the link you shared, it says 50% is retained in cash, and not collateral.

Also, this query was raised in an earlier thread, where a reply by another Zerodha member is along the same lines as the two scenarios I raised earlier…

New Running Account Settlement Rule - Single day for clients of all stockbrokers in India

This is how the retainable margin is calculated (extract from NSE’s FAQs): [image] Example: Cash - 1 lac Collateral pledged - 10 lacs Margin required - 1.5 lacs First, 50% of the margin required is retained in form of cash i.e. 75k. For the remaining 75k, the collateral pledged balance is checked. In the above example, since collateral is 10 lacs, the remaining 75k can be utilised from it. The stockbroker can retain up to 225% of 1.5 lacs i.e. 3.375 lacs. 75k is already collected in cash…

@TheGouda

While margin required to be maintained 50:50 in cash and collateral.

Maybe I haven’t understood what you have written here, but even this is incorrect. Cash is only required only for MTM, brokerage, charges etc., rest if cash collateral > non cash collateral, there’s no need to have cash > collateral.