DPC on overdraft on account of Margin Money

G

gdshan

New Member
#1
#1
Dear All

I am a new entrant to trading in F&O segment and had started trading from October onwards with India Infoline.

I had always been ensuring that my margin requirement is more than adequately covered by way of stocks which I am holding. However, I find that the broker is charging DPC for the overdraft amount which occured only due to the margin money & MTM loss requirements and not otherwise. Whenever there has been any margin call, I have always provided for the same. That being the case, I do not understand as to why the broker should charge DPC when he would have simply pledged the stocks with the exchange to cover the margin requirements for the F&O exposure I took.

Kindly let me know whether the broker's action in this regard is in order.

Regards

Shankar
 
S

srejith

New Member
#2
#2
Dear Friend,
As far as the DPC case depnds diffrent with each brokr, in the case of IIFL now,They will charge u DPC from the same date u purchase the stock in margin. and the charges will be in between 18% min to 24% max, u can ask them to set it to 18.

Best wishes..
Srejith
 
G

gdshan

New Member
#3
#3
Dear Friend

Thanks a lot for your reply.

It however puzzles me to find that DPC is being charged on the margin outstanding as the broker is strictly not out of funds and is only utilising my stocks as holdings to cover my margin requirement.

Please correct me on the above if I am wrong.

Regards

Shankar
 
I

iiflcustomerservice

New Member
#4
#4
Dear Shankar,

This has reference to your observations. In order to help us address the same, kindly provide us complete details (such as Login ID/contact number in connection with this issue . Please quote the same in your email. Upon receipt of the mail, our customer service team will be able to work on resolving the same.

Regards,

IIFL Customer Service

gdshan said:
Dear All

I am a new entrant to trading in F&O segment and had started trading from October onwards with India Infoline.

I had always been ensuring that my margin requirement is more than adequately covered by way of stocks which I am holding. However, I find that the broker is charging DPC for the overdraft amount which occured only due to the margin money & MTM loss requirements and not otherwise. Whenever there has been any margin call, I have always provided for the same. That being the case, I do not understand as to why the broker should charge DPC when he would have simply pledged the stocks with the exchange to cover the margin requirements for the F&O exposure I took.

Kindly let me know whether the broker's action in this regard is in order.

Regards

Shankar
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