General

How is my Shares as margin interest calculated in Futures and Options?

Interest is charged under the iValue Plan in F&O when you use pledged shares as collateral.

Here’s how the interest Is calculated:

• Annual interest rate: 9.85% per annum
• Daily interest rate:

9.85% ÷ 365 = approx. 0.027% per day

Interest is calculated daily on the margin amount utilized, not on the total value of your shares pledged as margin.

Simple Example

• You pledged shares worth ₹5,00,000
• Margin Utilised for taking positions: ₹2,00,000
• Daily interest rate: 0.027%

Daily Interest:

₹2,00,000 × 0.027% = ₹54 per day

This interest is charged only for the days the margin is used.

Important Points to Note

• If you pledge shares and take F&O trades, the system first utilizes SAM (Shares as Margin).

• Interest is charged only when SAM limits are utilized.

• If you do not want to pay interest, you can:

  1. Deallocate the securities margin from the F&O segment, or
  2. Unpledge your shares, or
  3. Allocate margin to another segment where funding is not required.

If you are mapped to prime plans, interest will not be applicable