What is the cash-collateral margin requirement at FYERS?

What is the cash-collateral margin requirement at FYERS?

When trading using collateral margins from pledged holdings at FYERS, it's mandatory to maintain at least 50% of the total margin requirement in cash or cash-equivalent assets. This rule is in line with regulatory guidelines set by SEBI and ensures prudent risk management while trading on leverage.

If the 50:50 cash-to-collateral ratio is not maintained, FYERS will apply a 15% per annum interest on the shortfall amount. This charge is debited from your ledger weekly until the cash margin requirement is met.

How is the 50:50 cash margin rule applied?

The 50:50 rule means that for any margin requirement, a minimum of 50% must come from cash or cash-equivalent sources (such as ledger balance or liquid funds), and the remaining can be from approved pledged securities.

Example:

  • Total margin requirement: ₹1,00,000
  • Required cash margin (50%): ₹50,000
  • If you only have ₹30,000 in cash, there's a shortfall of ₹20,000.

FYERS will charge 15% annual interest on the ₹20,000 shortfall, which equals approximately ₹8.22 per day. This interest is calculated daily and debited on a weekly basis to your ledger.

Regularly monitor your margin composition, especially if you're actively pledging or unpledging holdings. Ensure your cash balance meets or exceeds 50% of your total margin usage to avoid interest charges.

What if I don’t rectify the cash shortfall?

If the shortfall continues, the interest charges will accumulate weekly until corrected. Over time, this can significantly impact your trading costs. Maintaining the correct ratio is essential to avoid recurring charges and potential liquidity issues.

Last updated: 12 Sep 2025