In Equity Derivative Segment and Currency Derivative Segments IIFL is allowed to accept approved securities from clients for margin purposes. However, IIFL can lodge their own securities only to the Clearing Corporation and not the clients’ securities. Where Member has accepted securities with appropriate hair cut for margin purpose, but has to deploy his funds for meeting margin requirements of the client at the Exchange / Clearing Member, IIFL may levy interest or delayed payment charge on debit balance.
Example:
| Sr. No. | Particulars | (Rs.) |
|---|---|---|
| A | Ledger Balance | -75000 |
| B | Total Derivative Margin | 100000 |
| C | Clear Ledger Balance after Margin Reversal {A + B} | 25000 |
| D | Collateral Available (After Haircut) | 150000 |
| E | Required Margin - Cash Component {B*} | 50000 |
| F | Benefit for Excess Non-Cash Component | Nil |
| H | DPC applicable on Balance {E-C-F} | 25000 |
*This proportion is based on the % at which margin is payable by Broker to Clearing Member/ Clearing Corporation, presently fixed @50% in cash & cash equivalent.