I don’t suppose something is actionable for Zerodha right here. It’s as much as the clearing company, exchanges, and SEBI to outline a framework for this, which the brokers can comply with. Zerodha can not by itself determine to cost decrease margin as a result of the consumer holds the underlying in a name promote.
Sure, that is completely appropriate. There isn’t any position of Zerodha right here. It’s about clearing company. So, you cannot anticipate any flag or and so forth from Zerodha.
dcd:
I don’t suppose something is actionable for Zerodha right here. It’s as much as the clearing company, exchanges, and SEBI to outline a framework for this, which the brokers can comply with. Zerodha can not by itself determine to cost decrease margin as a result of the consumer holds the underlying in a name promote.
Santhosh9:
There isn’t any position of Zerodha right here. It’s about clearing company.
Not true, Shoonya doesn’t require sustaining money margin for coated name if POA is linked and there are enough shares in demat.
I believe the constraints at Zerodha and different brokers are resulting from how their RMS is structured and the extra regulatory complexity, not resulting from a regulatory impediment. Zerodha FAQ admits as a lot:
assist.zerodha.com
Why is margin profit not supplied for the coated name technique in Zerodha?
Why is margin profit not supplied for the coated name technique in Zerodha?
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@nithin I’m not positive whether it is SEBI mandated OR tough to do adjustments to Zerodha RMS… may you please tell us your ideas?
pavinjoseph:
Not true, Shoonya doesn’t require sustaining money margin for coated name if POA is linked and there are enough shares in demat.
Do examine in the event that they’re pledging shares held in demat, after which offering margins towards such collateral in your brief possibility place.
Santhosh9:
I’m not positive whether it is SEBI mandated OR tough to do adjustments to Zerodha RMS… may you please tell us your ideas?
Cross margining profit supplied by the CCs are solely obtainable until the time that the settlement is accomplished. For instance – Should you purchase Reliance fairness on Monday, and have RIL brief future place on the identical day, you’re entitled to get cross margin profit. As soon as the Reliance have been credited to your demat, the cross margining profit goes away and also you’ll have to have full margins in your Reliance brief future place. In essence, cross margining profit is just for sooner or later and isn’t obtainable if shares are held in demat account
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I’m not positive why Indian brokers will not be taking this situation up. In USA, coated name could be very simple, my brother does it each week on his holdings by way of Robinhood.
attoti_bharath:
I’m not positive why Indian brokers will not be taking this situation up. In USA, coated name could be very simple, my brother does it each week on his holdings by way of Robinhood.
Issues work in a different way there, In US there is no such thing as a idea of central depository like cdsl or nsdl and so forth, shares sit with dealer and on brokers identify, so a dealer can determine. Additionally all trades received’t occur at exchanges, dealer generally is a counter social gathering or dealer can ship orders to any market maker or darkish swimming pools thus they’ve extra benefit in customizing every thing. Mentioned that allow me ask our workforce if we are able to a minimum of strategy exchanges on this.
siva:
In US there is no such thing as a idea of central depository like cdsl or nsdl and so forth, shares sit with dealer and on brokers identify, so a dealer can determine.
@sivaWhen we pledge shares, shares might be with the dealer. So, Can’t zerodha do the identical ?
Santhosh9:
So, Can’t zerodha do the identical ?
No, shares might be underneath consumer identify solely, stated that you’ll get margin for pledging and you should utilize that to put in writing a name, 50% nonetheless has to return from money or liquid collateral although.
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I’ve some shares ; pledged them ; Coated calls went ITM
What ought to I do on expiry.
Nothing from my facet proper ? shares can be routinely unpledged ?
What if I’ve some positions (subsequent month) utilizing cash from pledging shares. What would occur to these on expiry ?
