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, you must maintain at least 50% of the total margin requirement in cash or cash-equivalent assets. This complies with SEBI’s regulations and ensures risk management while trading with leverage.

For intraday equity and derivatives, interest is charged at 15% per annum on the portion of margin funded through non-cash collateral or pledged holdings that exceeds the 50% limit.

Margin requirement is determined by the highest margin utilisation during the day, based on exchange snapshots from the NSE F&O segment. This means your intraday peak margin usage is considered while calculating any shortfall or interest.

How is the 50:50 rule applied?

Under the 50:50 rule, for any given margin requirement:

  • 50% must come from cash or cash-equivalent sources (like ledger balance or liquid mutual funds)
  • The remaining 50% can be covered through 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 (approx. ₹8.22 per day). Interest is calculated daily on the shortfall and debited weekly from your ledger until the cash balance meets the 50% requirement.

Monitor your cash-to-collateral ratio regularly, especially if you’re pledging or unpledging holdings during the day. Remember that interest is based on your highest intraday margin utilisation as per NSE’s snapshot data, so maintaining an adequate cash balance throughout the day helps avoid charges.

What if...

ScenarioSolution
I pledged stocks but still got charged interestInterest applies if your cash or cash-equivalent portion is below 50%, even when you have pledged collateral.
I don’t have enough cash to meet the 50% ruleAdd funds to bring your cash portion back to 50%; otherwise, interest continues on the shortfall.
I unpledged some holdings and then saw interest chargedUnpledging reduces collateral and may drop your cash ratio below 50%, causing fresh interest to apply.
How do I avoid recurring interest charges?Maintain at least 50% of your margin in cash or cash equivalents and monitor it through the Margin Statement.

Last updated: 05 Dec 2025