F&O Margin Against Shares - Mutual Funds as Collateral

[lokanathpai]

I want to invest all my money in trading account in some Balanced Mutual Fund. Can a collateral on that mutual fund can be treated as margin on Options position?(Not for intraday) Presently I am with SBICAP. They insist 100% cash as margin amount on option positions. They say it is as per new rule specified by SEBI. i came to know some brokers allow this collateral as margin. Any way-out?

 

[Chittorgarh]

@lokanathpai
Margin Against Share is offered by most full-service and discount stock broker. Please note:

1. You could only keep shares of certain companies as collateral in margin against shares. The list vary from broker to broker.

2. We have not come across any broker who keeps Mutual Funds as collateral for margin against shares.

We would suggest to have a call with SAMCO. SAMCO Margin Funding Products are popular among investors. They are the discount brokerage service provider.

Please share back feedback from your discussions with stock broker regarding this request.

 

[curiousv]

When we get margin against our shares of mutual funds ...from our broker ..do we have to pay interest

 

[curiousv]

I want to invest all my money in trading account in some Balanced Mutual Fund. Can a collateral on that mutual fund can be treated as margin on Options position?(Not for intraday) Presently I am with SBICAP. They insist 100% cash as margin amount on option positions. They say it is as per new rule specified by SEBI. i came to know some brokers allow this collateral as margin. Any way-out?

Mutual funds can be put as collateral for option positions.