Understanding Haircut in Pledged Securities

What is a Haircut and how does it impact the pledge margin?

A 'haircut' is essentially a risk-control measure. It's the difference between the market value of your securities and the value that's considered for the pledged securities. For instance, if you pledge securities valued at ₹20,00,000 and the applicable haircut is 10%, the collateral value you'll receive is ₹18,00,000. We always strive to ensure our customers are well-informed and safeguarded against market volatilities.

Find out the list of approved securities available for pledge and their applicable haircuts here.