Exposure Against Stock

This product provides trading opportunities to clients by accepting Demat shares as collateral. The client can pledge these share positions as collateral to gain additional margin.

We provide an intraday limit on defined set of stocks based on a certain haircut percentage.

Who can avail this facility? Are there any charges for this facility?

This facility is activated for all Reliance Securities Limited (RSL) customers except NRI.

Delayed Payment Charges (DPC) will be levied on debits arising out of positions taken against collateral.

From where and how can a client avail this facility?

There is no action is required from your side. Our system automatically calculates the collateral value for all the eligible scrips lying in your depository account (after applying haircut) & allows you to take exposure against collateral.

Will all the scrips allowed for trading by RSL be considered as collateral?

No. RSL will decide from time to time the list of stocks that will be available as collateral.

How can I view my collateral value?

Collateral value will be reflected in the “Limits report” under the “Positions” menu available on the trading portal, InstaPlus. This limit will be shown as “Collateral Value”.

How is the collateral value calculated?

Collateral value of an eligible stock lying in your depository account will be calculated as (Quantity* Last Traded Price)*Applicable Haircut Percentage. The haircut % for each stock will be decided by the company (Ranging between 20% and 60%), applicable from time to time. For example if you have 100 shares of Reliance Capital in your depository account then the collateral value will be calculated as follows:
Market value of shares = (last traded price x quantity) Rs.1000 x 100 = Rs. 1,00,000
Applicable hair cut for Reliance Capital scrip = 20%
Collateral value given against Reliance Capital stock = [100000-(20% x 100000)] = Rs.80,000

For which positions is the benefit of collateral value given?

You can take intraday positions in the cash segment (MIS) using the collateral value as margin. You can also take Futures and Options sell positions using the collateral value as margin.

Will MTM Loss made on any position be adjusted against the collateral value?

No, MTM Loss will not be adjusted against these limits. But MTM Loss will get reduced from the balance available limits.

What happens if I make a loss on the positions taken against the collateral value?

If your position is running in a loss, these can be liquidated by RSL if available margin falls below minimum margin requirement. This liquidation of position by RSL may result in realized loss.
If your ledger does not have sufficient cash balance to cover for that loss, your collateral value can also be liquidated to meet the shortfall. RSL also reserves the right to sell the other shares in your DP in case the shortfall is not met by liquidation of collateral, as mentioned above.

Who gets the benefit of the corporate actions like bonus, dividends, etc. while the stocks are taken as collateral?

Stocks will continue to remain in your beneficiary account and hence you will get the benefits in their name.

Will there be any auto pledge creation at the end of day?

If you have taken positions in derivatives & there is a margin short fall at end of trading hours, then auto pledge is created on the scrips (lying in your depository account) eligible to be marked as collateral to the extent of margin short-fall.
In case of pledge stocks, any off market transfer given by you on such pledged shares are likely to be rejected due to marking of pledge, unless unpledged.