Stock Plus-Get Margin Against Your Shares For Intra-day and Positional Trading

Published Oct 12, 2024

Stock Plus allows you to get exposure/margin against your shares by pledging them as collateral.

  • 50:50 Cash (Liquid Cash or Cash Equivalent Collateral) vs. Collateral Ratio as per the new circular on the segregation of collateral at the client level.
  • Ideal for Option Sellers: You can pledge your holdings and get collateral to trade for your positional trades.
  • Collateral against 500+ Shares, Mutual Funds, G-Sec, ETFs, SGB.
  • Trade in Commodity (MCX) with Collateral margin.

 

Example:
Suppose you wish to buy 1 lot of BANK NIFTY in your trading account, which requires approximately Rs. 1.5 lakh as carry forward margin. Now, if you have Rs. 75,000 in cash and shares worth Rs. 1 lakh in your account, you can pledge them to get Rs. 75,000 as collateral (assuming a 25% haircut) and initiate the trade.

Points to Note:
  1. Cash: Cash can be in the form of liquid cash or cash-equivalent collaterals. The list of cash-equivalent collaterals accepted can be checked here.
  2. Collateral and Haircut: Collateral is calculated after deducting the haircut from the value of the pledged stock.
    Example: If the value of your holding is Rs. 1 lakh and the haircut percentage is 25%, then the collateral value will be Rs. 75,000.
  3. List of Instruments: You can refer to the list of 500+ Shares, Mutual Funds, G-Sec, ETFs, and SGB, along with the corresponding haircut percentages accepted as collateral from this link.
  4. Segments: Trading against collateral is allowed on the following segments:
  5. Margins pledged for one segment cannot be utilized for the other. Equity and Commodity segments must be maintained and pledged separately.

 

Segment / Product NRML MIS BO/CO
Cash NA YES YES
Future YES YES YES
Option Buy YES YES YES
Option Sell YES YES YES
Commodity YES YES YES

 

Charges:

  • Pledge and Unpledge Charges: Rs. 15 + GST per script is applicable for both pledging and un-pledging.

 

Pledging and Un-pledging:

  • To see how you may pledge your holdings, kindly refer to this LINK for instructions.
  • You may sell your pledged holdings anytime using the CNC product type, just like you would with holdings in your DP account. Once sold, the shares will automatically be un-pledged and marked for pay-in on T+1.

 

50:50 Cash vs Collateral:

  • If the margin is utilized and the 50:50 cash vs collateral ratio is not maintained, late payment charges at 18% per annum will be applicable on the shortage amount. This will be calculated on a day-to-day basis for both intraday and carry positions.

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