I have been wondering if one needs to pay interest if one uses cash market securities in DMAT account for satisfying initial and exposure margin requirements on F&O side. MTM losses obviously will have to be paid in cash.
An example:
I have 10L worth stocks, after haircuts etc. this comes to say 7L. Also with the same broker I have a few F&O positions which has 5L as my initial and exposure margin requirements. Now do I need to put this 5L in cash in my account? If I don't and the broker uses my securities as collateral, does he need to charge me interest on this amount?
I have been getting contradictory statements about this from different brokers. Some say they will not charge interest (Kotak, Anand Rathi), some say they will charge interest (Indiabulls). Also Indiabulls is saying that it would be impossible for any broker to put your cash market securities as margin with the exchange unless they are transferring to a pool account, so they have to provide cash from their pockets and consequently interest will have to be charged.
Anyone knows actual exchange rules?
An example:
I have 10L worth stocks, after haircuts etc. this comes to say 7L. Also with the same broker I have a few F&O positions which has 5L as my initial and exposure margin requirements. Now do I need to put this 5L in cash in my account? If I don't and the broker uses my securities as collateral, does he need to charge me interest on this amount?
I have been getting contradictory statements about this from different brokers. Some say they will not charge interest (Kotak, Anand Rathi), some say they will charge interest (Indiabulls). Also Indiabulls is saying that it would be impossible for any broker to put your cash market securities as margin with the exchange unless they are transferring to a pool account, so they have to provide cash from their pockets and consequently interest will have to be charged.
Anyone knows actual exchange rules?