What happens if the 50-50 ratio is not maintained?

What happens if the 50-50 ratio is not maintained?

If the required 50% cash component is not maintained, an interest charge of 15% per annum will be levied on the shortfall amount. This charge will be debited to your ledger on a weekly basis until the shortfall is rectified.

Interest calculation:

If the required cash margin is ₹50,000, but you only maintain ₹30,000, the shortfall is ₹20,000. An annual interest of 15% on ₹20,000 amounts to ₹3,000. On a daily basis, this equals approximately ₹8.22, which will be added to your ledger weekly.

To avoid these additional costs, we recommend regularly reviewing your margins and ensuring that the correct cash-to-collateral ratio is maintained.


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