@nithin @siva @VenuMadhav Zerodha requires 50% of the margin on overnight F&O positions to compulsorily come in the form of cash (or equivalents) and the balance 50% can be in the form of collateral (pledged stocks and ETFs). In one of my Zerodha accounts, I was charged a penalty for not maintaining 50% in cash although my overall margin was adequate.
A lot of other brokers do not insist on this 50% rule. In other words, they allow the whole margin to come by way of collateral in the form of pledged stocks and ETFs.
Can someone throw light on these differing practices used by different brokers? Is this 50:50 rule mandated by SEBI or by the exchanges? Or is this Zerodha’s policy alone?