What is 50 -50 cash - collateral rule of SEBI?
SEBI’s 50:50 50 -50 cash - collateral rule means that when you take positions in Futures & Options (F&O), at least 50% of the required margin must be in cash or cash-equivalent funds. The other 50% can be from pledged shares or other approved securities.
If you don’t meet the 50% cash part, you may be charged interest on the shortfall.
Margin
- 1. What does "stock pledge" mean in trading?
- Why should I pledge my Stocks / Securities?
- How should I pledge my shares / stocks
- Which shares can I pledge?
- Where do u get a list of Exchange approved securities for Pledge?
- Does the list of approved securities stay the same or change over time?
- Can I pledge unlimited shares of any stock?
- How will I get margin for pledged Stocks / Securities?
- What is a “haircut” and why is hair cut is deducted from value of pledged shares?
- How is a haircut applied to pledged securities?
- When can I pledge or unpledge shares?
- When will I get margin after pledging?
- Is there a fee for pledging?
- Can I sell pledged shares without unpledging them first?
- Can my MTM (Mark-to-Market) loss be covered using the margin from pledged shares?
- What happens if I don’t pay the MTM loss by 9:30 AM on T+1 day?
- What is 50 -50 cash - collateral rule of SEBI?
- What is the interest charged on a shortfall?
- What if I want to take a new position after my position was squared off by the RMS team?
- How will I get margin benefit in a hedging position when both legs are held simultaneously?