As per article on this link it is established that all the stocks on BSE & NSE shall move to T+1 day settlement cycle (Know more). This change shall lead to better capital management for all clients as now the funds will become available and shares will be credited to demat account immediately on the next day after the trade is done. (Instead of waiting until t+2). Further, to ensure that the benefits of such a change in settlement cycle become available to all clients of PM Securities, we shall be adapting trading systems.
Starting the 30th of Jan 2023, margins available for clients on any given trading day will be based on the below policy:
A) Clear ledger balance on T day
B) (-) Credit bills clearing on T day
C) (+) Value of shares sold on T-1 for which early pay-in has been done and settlement is yet pending *
D) (-) Margin blocked on unsettled equity positions in case of settlement holidays
E) (-) Margins blocked on shares sold on T-1 for which early pay-in is not done on T-1 end of day.
F) (+) Value of re-pledged cash equivalent securities (post haircut)
G) (+) Value of re-pledged non-cash securities (post haircut)
H) (+) 80%value of shares sold on T day that were held in PM Securities demat account (Not external demat) #
= Total Available Margins (TAM)
* Early pay-in benefit shall be given to the extent of the value of shares sold on T-1 day or Rs. 10 Lakhs whichever is lower.
# Subject to a maximum of Rs. 10 Lakhs.
Derivatives Segment (50% cash to collateral ratio requirement)
At all times, the total available margin shall be computed as per above policy. However, for F&O segment at-least 50% of the total margins should be maintained in cash/cash-equivalent form. For the purpose of calculating margins available for F&O segment, the below formulae shall be used:
[TAM] OR [ 2 X ( TAM - G -H ) ] whichever is lower.
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Above changes to the margin, policy do away with blocking margins on unsettled equity for longer periods, thereby improving capital efficiency for traders and ensuring the benefits on account of revised settlement cycle of T+1 become available to all client of PM Securities.