BMFD
Can I deactivate my BMFD product and shift to normal trading?
Yes. It can be deactivated after clearing debit in the BMFD ledger. Need to send mail to Activation team and RMS for the approval to deactivate the same.
At what price funding reversed and debited in normal ledger
Funding reversed buy rate and debit in normal ledger
When will funding be reversed and debited to a normal ledger?
a. Not authenticated OTP b. Place release request for funded stock c. Funded stock sold d. Funded stock moved to Z category. e. BTST done (Buy today and sell tomorrow). Full quantity will be reversed even part sold on T+1. d. Corporate Action in the ...
If there is any corporate action in stock then what will happen if stocks are funded?
Funding will be removed, and debit will be transferred to the IIL ledger. Also, MTOM loss will be debited to the IIL ledger.
If clients have bought the stock as BNPL and sell the same as delivery or intraday trades done then funding will be initiated for the shares bought as BNPL?
No, it will be treated as intraday trades only on the FIFO method and no full funding will be initiated.
When does Funds margin for BMFD positions entry passed in ledger as Debit / Credit?
1. To collect the margin against funding, we do Earmarked available pledge stock in the holding. If there is no stock available, then clients have to pay the margin so the same getting debited in the ledger this is also called Cash collateral margin. ...
What is the meaning of entry passed in the normal ledger - Funds margin for BMFD positions entry as Debit / Credit ?
It is nothing but Cash Collateral margin getting Debit / Credit in the ledger.
How much margin is required in BMFD
Margin percentage would be considered as per the exchange VAR + 5 times ELM
Will all stock bought as BNPL be considered for the funding?
No.. Funding is allowed only in the stock available in the list of Group 1 securities (IIFL E A B C D) published by exchange every month. The same must be bought in NSE only and no funding will be allowed if stock is bought in BSE.
Shall we get margin on T+1 for stock bought today in MTF?
Yes, Need to authenticate by client to pledge the stock in MTF before 8:30 PM on T Day only
How client will get margin on shortage of shares?
Please note if due to any reason there is shortage of shares payout in client's account on T+1 days then OTP will not get validated and it will get rejected with reason overdue as only on full payout quantity it gets pledged.
How client will get limit on unrealized Profit?
Please note client not get margin on unrealized profit if any.
What happens in case you are not able to confirm the BMFD otp on time?
>If you are not able to confirm OTP by T+1 day, then stock will be moved to Client Unpaid Securities Pledgee Account (CUSPA) if your account is in debit, otherwise to your demat account if it is in credit. >IIFL will reverse the funded trade, debit ...
What is the process for BMFD?
1. Initially, the stock needs to be pledged by you under the margin pledge module. Once you take the funding, IIFL Securities will initiate the BMFD earmarked pledge of the given pledge stocks. 2. IIFL Securities will send an OTP link to your ...
What are the important points to be remember before we take BMFD product?
1.Clear the payment of purchase of unapproved stocks and stock purchased in BSE within T+6. 2.Clear dues towards Brokerage, statutory charges, Interest, Intraday losses, Derivative segment losses as debit arising due to these transactions will fall ...
What is criteria for Broker Margin Funding?
For old clients :- For activation of BMFD product you need to have minimum networth of Rs.25,000/-. For new clients :- It will get activated by default.
What is Broker Margin Funding ?
Broker Margin Funding (BMFD) is a product which will allow you to take leverage positions in capital markets segment to purchase securities with the help of amount borrowed from IIFL against securities purchased.