What is the cash-collateral margin requirement at FYERS?
When trading using collateral margins from pledged holdings, you must maintain at least 50% of the total margin requirement in cash or cash-equivalent assets.
This rule complies with SEBI’s regulations and is designed to ensure prudent risk management while trading with leverage.
If this ratio isn’t met, FYERS charges 15% interest per annum on the shortfall, which is debited from your ledger on a weekly basis until the required cash margin is fulfilled.
How is the 50:50 rule applied?
Under the 50:50 rule, for any given margin requirement:
- 50% must be from cash or cash-equivalent sources (like ledger balance or liquid mutual funds)
- The rest can be covered using approved pledged securities
Example:
- Total margin requirement: ₹1,00,000
- Minimum cash required (50%): ₹50,000
- If cash available: ₹30,000
- Shortfall: ₹20,000
You’ll be charged 15% annual interest on the ₹20,000 shortfall, which is approximately ₹8.22 per day.
This interest is calculated daily and debited weekly from your ledger.
💡 Tip:
Regularly monitor your margin composition—especially if you're pledging or unpledging holdings.
Ensure your cash balance meets or exceeds 50% of your total margin usage to avoid interest charges.
What if?
| Scenario | What you can do |
|---|
| I pledged stocks but still got charged interest | Check if at least 50% of your margin is in cash or cash-equivalent. Pledged holdings alone don't meet the SEBI 50:50 requirement. |
| I don’t have enough cash to meet the 50% requirement | Add funds to your ledger to cover the shortfall. Until you do, 15% annual interest will apply on the deficit. |
| I unpledged some holdings and now got charged interest | Unpledging reduces your non-cash collateral. If cash ratio falls below 50%, interest starts applying on the shortfall. Monitor regularly. |
| How do I avoid recurring interest charges? | Maintain at least 50% of your margin requirement in cash. Use the “Margin Statement” to track your cash vs non-cash breakdown. |
Last updated: 12 Sep 2025
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