Finvasia

Finvasia

Well-Known Member
Just making sure about buying on NSE and selling on BSE or Buying on BSE and selling on NSE ...is allowed by Finvasia because I was reading your previous responses ..and if I am not mistaken you said ...even if someone chooses different exchange to square off ...it will not square off. So for example I buy 1000 sbi on NSE and sell the same on BSE ...the position will not square off ...eventually RMS will auto square off on both exchanges separately. Please confirm that when I square off ..it will be squared off as if I bought them in single exchange.
Yes, stocks bought on NSE shall be sold on NSE and similarly in BSE.
 

Finvasia

Well-Known Member
Hi finvasia referring to this case , he has to pay 1% penalty ie Rs 19000.
https://www.traderji.com/community/threads/option-scam-rule-penelty-lol-again.109192/#post-1415239

1) If I am carrying options and lets say sold on monday then I cant buy futures , stocks that day with that money ? can I buy different option ?

2) If I am carrying futures and lets say sold on monday then I cant buy other future or option with that money on same day ?

what are other different cases . please explain so that we be careful and avoid penalty.
For clarity, we have made this image to explain the options. Exchange needs upfront margin to buy Futures whereas pay out for option selling is to be considered for T+1 margin. So, no margin required trading intraday but for overnight position you should consider opening available margin only and not options selling funds.

1589290567646.png
 

Finvasia

Well-Known Member
I am sorry, I am still confused about the interest part.
Let's say I sold bank nifty 21000 CE as NRML order and want to carry it until expiry. At the time of placing this trade margin requirement was about Rs. 52k and at that time I had 26K in cash and 26K funds as collateral against my shares(pledged)
Now lets say my bet is wrong and bank nifty started going up so premium will go up so my position will be in loss ..so for example when my positional loss (MTM) has to be at least more than 26K before you will charge interest ? and I believe when this happens - there will be margin penalty of 1% per day by exchange?
You did not say how much interest you will charge per day?
If you are fully using the margin from the available collateral (cash and stocks), then MTM loss has to be paid in cash extra.
 
If you are fully using the margin from the available collateral (cash and stocks), then MTM loss has to be paid in cash extra.
You still did not answer my question completely.

If I am fully using margin from available collateral (cash + stocks) and there is MTM loss ...what will be interest you charge per day and will there be margin penalty by exchange or SEBI? if so what will be that margin penalty 1%?
 
no, it has to be in cash
Finvasia said they charge interest if there is negative balance but do you know how much interest they charge? I asked them twice but no clear answer..I am also wondering if there will be margin penalty of 1% by exchange if there MTM loss is more than available cash.(In other words cash is not enough to cover MTM loss)
 

Finvasia

Well-Known Member
You still did not answer my question completely.

If I am fully using margin from available collateral (cash + stocks) and there is MTM loss ...what will be interest you charge per day and will there be margin penalty by exchange or SEBI? if so what will be that margin penalty 1%?
There are two charges.

SEBI short margin penalty: Below is the circular for your reference.
https://www.sebi.gov.in/legal/circu...ient-margins-derivatives-segments-_20439.html

We charge 2% per month for the debit balance. The same is mentioned in our Tariff Sheet.