Hi @sonu.delhi, thank you for the suggestion! We are evaluating your request and will consider providing money market funds as collateral pledge.
Hi @Saurabh, 50:50 rule will apply for all positions. The rule is for brokers to maintain these margins with exchange and same is applied at client level too. Currently, we are allowing position against only collateral, however, client will need to pay interest @ 0.05% per day for margin utilization above 50%
Please also clarfiy that you are charing 0.05% for intraday positions or overnight positions.
I believe for intraday positions, the interest is not applicable.
@Kiran From where can I get list of instuments & their haicuts
Apologies for the delay in reply, not sure how we missed this. Currently we are charging interest only on overnight positions. Hope this helps
At Dhan, we always show all information live. The reason we have not uploaded a sheet with haircuts is because the information sometimes tends to lag and is hard to manage. We are working on a better integration to show live margins for instruments upfront and will update you as soon as that is done.
Hai , Margin is giving FREE by NSE to the clients those who pledged the shares - why you are charging interest , DHAN is not Lended (OR) provided margin to us …
Hai guys this is day robbery by DHAN , zerodha , fyers,5paisa, these brokers are not charging intrest on colleterial , so only they are TOP list - stay away from dhan if you are pledged shares with them , its totally against SEBI rules - Traders need to aware these kind of robbery from broker
i will put a video about awareness video see that
HOW YOUR BROKER IS STEALING YOUR MONEY! (Using 5 Different Methods)
@Pranita Oh you are following this 50:50 rule - ok
Then where the rules is showing to charge the interest on colleterial , where SEBI told
dont show your face honestly we are following SEBI rules , dont tell one more time in community we are following SEBI rules
i will put a mail to SEBI this day robbery to investigate in brokers about charging intrest on colleterial margin - we will find a solution very soon
any way i am not using DHAN any more - stick with zerodha for keeping our profit in our account safely
Every broker you mentioned above - charges interest rates on collateral. You are free to check with anyone one of them, we have reconfirmed this before posting this.
These are exchange prescribed rules & regulations, we get audited and reviewed for them from time to time. Thank you.
My understanding is that the interest is charged only and only for margin utilization above 50% that too for overnight positions. And this is across brokers.
Yes, this is true.
Rule is simple, exchange allows 50% of margin from pledge shared by clients. If client is not providing rest from cash, broker provides the rest 50% margin to exchange. And interest is charged only on overnight positions only.
I have some queries.
i) Can a non POA client pledge shares and utilize the margin for FnO position?
ii) if I have total collateral margin after haircut 1,00,000 out of which 50,000 from cash component and 50,000 from non cash component. In this case can I use this 1,00,000 as a margin to create FnO position without paying interest?
I want to trade in fno but I don’t have cash margin, but I have stocks worth 4 lakh, can i pledge and use 100 % of the margin, since I can’t manage 50:50 margin system. I’m ready to pay interest component on remaining 50 % fund.
hi @Vipin42 yes, you can use it but you will not get 100% pledge margin benefit on your entire portfolio. There will be some haircut based on the script. And you can use the margin benefit across all segments and all buy / sell transactions.
Thank you ma’am. Post haircut, i believe I’m eligible for 3lakh margin. So technically if trade of one lot costs 1.30 lakh, 65k i will be able to use without interest and I need to pay interest only on another 65k. Right?
Hi @Vipin42 ,
Yes, you are right. Do let us know incase of any other queries!
is interest on pledged shares deducted daily basis? or after unpledging
As mentioned above, as per exchange guidelines, for creating F&O positions, out of total margin requirements 50% of the margin can be in cash, and the remaining 50% can be non-cash components (Portfolio Holdings). The shortfall portions of the cash margin funded will attract an interest rate of 0.05% per day. This is charged on a weekly basis.
Dhan Customer Support
Hello Team Dhan
As mentioned in your pledge attachment, I think Dhan do not consider BHARAT BOND ETF as a Cash equivalent while other brokers like Zebu considering it.
That’s the ONLY drawback you guys are having now.
Because, if I am getting decent return on my trading capital too, why i will not shift to that broker.
Welcome to Dhan. Yes, you are right - Bharat Bond ETF is considered Non-Cash Component and this is as per exchange guidelines. You will get collateral benefit of 80% on that on Dhan, Scrip code is: ICICIB22.
Wouldn’t be able to comment on why other brokers are considering it when exchanges do not consider as Cash Equivalent. If they consider it is Cash Equivalent, and giving you 80% benefit - it’s still the same experience in that case.