Download E-Margin is a leveraged trading facility. Positions

1. What is E-Margin(T+5/T+30)? Why should I use this facility?
E-Margin is a leveraged trading facility. Positions created under this product can be squared
off or converted to delivery till T+30 days in BSE exchange and T+5 in NSE exchange
(T=Trade date) on or before the specified time i.e. 02:45 pm. Unlike for a 'Cash' order, you
do not have to pay the full order value for E-margin orders. For example: If you would like
to buy 100 shares of INFOSYS @ Rs.1500 on T day and applicable E-margin % for the scrip is
20%, you just need to pay Rs. 30000. This margin can either be in the form of cash or as
collateral i.e. by marking securities lying in your demat account.
You can take buy stocks with margin amount and have an option to carry the position till a
maximum of T+30 days in BSE exchange. In case you do not square off or convert the
position to delivery, AxisDirect will square off the trade on T+30 th day in BSE exchange and
on T+5th day in NSE exchange at any time after 2:45 pm.
For example: You buy 100 shares of INFOSYS @ Rs.1500 in BSE exchange on T day. You have
an option to square off the position or convert to delivery till T+30 Trading days. If you fail
to square off the position before 2:45 pm on T+30 th day, your position will be squared off by
AxisDirect. However, you are required to monitor and fund for Mark to Market loss arising
on your E-Margin T+30 open positions on real time basis, else (if Net Liquidation Value falls
below 50%) E-Margin T+30 open position(s) can be anytime squared off by Axis Direct Risk
Management to an extent required without waiting for due date and time of square off of
your E-Margin open position(s)with or without intimation to the clients.
2. What is the difference between E-Margin and Cash?
Cash
1. Require to hold funds equal to the
full order value.
E-Margin
1.Margin requirement is in the range of 20% - 50
% depending on the scrip you are buying
2. Transaction can be squared off /converted
2. Delivery based transaction, settled on to delivery till T+30 in BSE exchange and T+5
in NSE exchange
T+2 day.
3. What is the difference between E-margin and Intraday?
E-Margin
1. Margin required is more than Intraday
order.
Intraday
1. Margin requirement ranges from 15% - 45
% (depending on the scrip) of the order
value.
2. Transaction can be squared off
2. Positions taken needs to be either
/converted to delivery till T+30 days in BSE squared off on the same day or can be
exchange and T+5 in NSE exchange.
converted to delivery in both the
exchanges on the same day.
3. Short Sell is not allowed i.e. first you are
required to buy stocks
3. Short Sell is allowed.
4. What are the timings for E-Margin trading?
E-Margin trading can be done between 9:15 am - 3:30 pm on both the exchanges. However,
you should square off the open position by 2:45 pm on due date (T+5th / T+30th day) of EMargin square off (as applicable)
5.
Is E-margin available on both the exchanges?
Yes, E-Margin is available on both the exchanges on NSE exchange it is for T+5 days and on
BSE Exchange it is for T+30 days.
6. Is E-margin available in Equity as well as Derivatives Segment?
No, E-margin is available only in Equity on both BSE and NSE exchange.
7. What will be the impact on the margin blocked if I/ AxisDirect square off the E-margin position?
When an E-Margin position is squared off, the margin blocked against the open position will be
released immediately after square off. You can utilize this released margin for further trading.
8. What will be the impact on my limits if I convert an E-Margin trade into delivery?
You can convert an E-margin trade into delivery only if you have adequate cash limits. You can also
mark hold on additional funds from your linked bank account. Once the order is converted to
delivery, your available limits will be reduced for further trading.
Example: You buy 100 shares of INFOSYS at the rate of Rs. 500 under E-Margin. Limit utilized is say
Rs. 10,000 against total order value of Rs. 50,000.
If you decide to take the delivery of 100 shares, you will have to mark a hold on additional funds of
Rs. 40,000 (Rs.50, 000 - Rs. 10,000). Thus, your fund limits will decrease for further trading.
9. Should the quantity for buy and sell leg be the same if I wish to convert it to Delivery on T day?
If you need to convert an E-Margin trade to delivery, the quantity should be equal to the executed
quantity at trade level.
For example, you placed a buy order for 100 INFOSYS shares. The order got executed in parts: 40,
30, 20, and 10 shares with four trade reference numbers. Now, if you wish to convert these trades
into delivery on the same date, you can do so based on the quantity in each trade reference
number. Partial conversion is not allowed at trade level on the same date.
10. Can I partially convert my E-Margin positions to delivery?
Yes, you can partially convert your E-Margin position to delivery however, on T day, if you need to
convert an E-margin trade to delivery; the quantity should to be equal to the executed quantity at
trade level.
For example, you placed a buy order for 100 INFOSYS shares. The order got executed in parts: 40,
30, 20, and 10 shares with four trade reference numbers. Now, if you wish to convert this trade to
delivery, you can do so based on the quantity in each trade reference number. Now if you try to
convert 50 shares on 'T' to delivery in one go, system would not allow you to do so.
From T+1 Day to T+5/T+30 Days (as applicable), you can convert E-Margin Open Positions to
delivery as per your requirement.
11. I have taken a buy position in E-Margin today. If I sell it the next trading day, what would be the
brokerage charges levied to me for such trades?
If the position is squared off by you on the next day, the charges levied would be as applicable for
Cash delivery trades.
Please refer Charges and Subscription
12. How do I convert my E-Margin position into Cash?
You can convert the 'E-Margin' position to delivery on 'T' day from Day's Trade book by selecting a
trade reference and by clicking on Convert to Delivery option.
However if you want to convert the 'E-Margin' position anytime between 'T+1' to 'T+5/30'
day, you will have to go to Open Position and click on Convert to Delivery option and enter
the quantity to be converted.
13. I have sold some shares in Cash, can I utilize the Credit of Sale for trading in E-Margin product?
Yes, you can utilize delivery sales proceeds for trading in E-Margin Product.
14. Can I short sell in E-Margin?
No, the first leg order should always be a buy order for E-Margin product.
15. Can I place an E-Margin order from the Call centre?
Yes. Please call us at 1800 210 0808.
16. I have placed the first leg of the E-Margin order from Website. Can I square it off from Call Centre?
Yes, you can call us at 1800 210 0808 to place your square off order.
17. What is the process of Mark To Market (MTM) for E-Margin trading?
The process of Mark To Market in E-Margin is to check the margin adequacy on all open 'E-Margin'
positions together with any other open positions and trades (Equity, F&O etc.).
AxisDirect runs this process at various time intervals during the trading day. If the available limit in
the trading account is not sufficient any time to bring the available margin to the required margin
level, then such client is considered for margin call and the positions can be squared off with or
without intimation to the client. AxisDirect tracks the margin adequacy on real time and on a
portfolio (various open positions) basis.
18. When will the realized profits / losses get credited / debited to/from my bank account?
Realized profit, in case of square off will get credited to the linked savings bank account on 'T+2'
from the date of square off. Realized loss, in case of square off will get debited from the linked
savings bank account on 'T' day i.e. on the date of square off.
19. Is there any Interest charged on delayed payment on positions which are marked for E Margin
(T+5/30 day)? Where can I see the Interest on delayed payment?
Yes, Interest on delayed payment at the rate of 18% p.a will be charged on outstanding debit
balance on all E-Margin positions.
The number of days for delayed payment charge would start from the Exchange pay-in date for the
settlement of the respective buy transaction and charged till the date the funds are actually
received (eg. till the date of Convert to delivery (CTD) or till the date of funds received/pay-out date
after squaring off of positions).
Interest on delayed payment on a per day basis would be displayed under History -> Funds
Settlement -> Delayed PymtChgs link under your Trading section.
For example:(a) E- Margin position from Funds only:
(i) E-Margin Position squared off on T+2
You ought
t sha es of S ip A at Rs.
u de E Ma gi o Ap 8,
ith %
Margin and sold full qty on Apr 20, 2016. i.e on T+2nd day , In this example Delayed payment
charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 18, 2016 + 2 days =Apr 20, 2016
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 20, 2016 + 2 days = Apr 22, 2016
No. of days delay in payment = Apr 20, 2016 to Apr 22, 2016 = 2 days delay
For the above case, Interest on delayed payment @ 1.5% per month or alternatively 18% p.a. would
be calculated on the outstanding debit balance for 2 days delay as follows:
Interest on delayed payment per day = outstanding debit balance * Interest on delayed payment %
per annum * 1/ 365 =80000* 18%*1/365 = Rs. 39.45/- per day or Rs.78.9 for 2 days. If there are
trading holidays in between then the Interest on delayed payment will be charged for these days
also.
(ii) E-Margin position squared off on T+9th day in BSE exchange
You ought
t sha es of S ip A at Rs.
u de E Ma gi o Ap
,
ith 20%
Margin and sold full qty on Apr 22, 2016.i.e on T+9th day , In this example Delayed payment
charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 11 , 2016 + 2 days =Apr 13 , 2016
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 22, 2016 + 2 days = Apr 26, 2016
(assuming additional 2 settlement holidays/weekend)
No. of days delay in payment = Apr 13, 2016 to Apr 26, 2016 = 13 days delay
For the above case, Interest on delayed payment @ 1.5% per month or alternatively 18% p.a. would
be calculated on the outstanding debit balance for 13 days delay as follows:
Interest on delayed payment per day = outstanding debit balance * Interest on delayed payment %
per annum 1/ 365=80000* 18%*1/365= Rs.39.45 per day or Rs. 512.88 for 13 days.
(b) E-Margin position Convert to Delivery (CTD):
(i) E-Margin CTD done on T+2nd day
You ought
t sha es of S ip A at Rs.
u de E Ma gi o Ap 8,
ith % Ma gi
a d o e ted the full t to Deli e o Ap
th,
. i.e o T+ d da , I this e a ple
Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 18, 2016 + 2 days =Apr 20, 2016
CTD done on 20th Apr 2016
No. of days delay in payment = Apr 20, 2016 to Apr 20, 2016 = 0 days delay
Thereby, no interest on delayed payment will be levied for the aforementioned transaction.
(ii) E-Margin CTD done on T+5th day
You ought
t sha es of S ip A at Rs. 1000 under E Margin on Apr 21, 2016 with 20% Margin
a d o e ted the full t to Deli e o Ap 8,
. (i.e. o T+ th da -assuming additional 2
settlement holidays/weekend) , In this example Interest on delayed payment would be calculated
as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Payin Date = T+2 i.e. Apr 21, 2016 + 2 days =Apr 25, 2016 (assuming
additional 2 settlement holidays/weekend)
CTD done on 28th Apr 2016
No. of days delay in payment = Apr 25, 2016 to Apr 28, 2016 = 3 days delay
Thereby, for the above case say Interest on delayed payment charge @ 1.5% per month or
alternatively 18% p.a. will be calculated on the outstanding debit balance for 3 days delay as follows:
Interest on delayed payment per day = outstanding debit balance * Interest on delayed payment %
per annum * 1/ 365=80000*18%*1/365 = Rs. 39.45 /- per day or Rs.118.36 for 3 days.
(c) E-Margin position from Collateral limits:
You ought
t sha es of S ip A at Rs.
u de E Ma gi o Ap
,
ith % Ma gi
and sold full qty on Apr 27, 2016. i.e. on T+4th day , In this example Delayed payment charges on
outstanding debit balance would be calculated as follows:
Margin amount = (100*1000)*20% = Rs 20000, this margin is adjusted against existing collateral
limits only, no bank pay-in for margin amount.
Outstanding debit balance = (1000 * 100) = Rs 100000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 21, 2016 + 2 days =Apr 25, 2016(assuming
additional 2 settlement holidays/weekend)
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 27, 2016 + 2 days = Apr 29, 2016
No. of days delay in payment = Apr 25, 2016 to Apr 29, 2016 = 4 days delay
Interest on delayed payment @ 1.5% per month or alternatively 18% p.a. would be calculated on
the outstanding debit balance for 4 days delay as follows:
Interest on delayed payment per day = outstanding debit balance * Interest on delayed payment %
per annum * 1/ 365 =100000*18%*1/365 = Rs. 49.32 - per day or Rs.197.26 for 4 days.
20. How is the additional margin called during MTM process?
The additional margin due to increase in scrip margin or mark to market losses is debited from the
available limits and then from bank account, if available. It is the client's responsibility to check the
adequacy of margins at all times and mark a hold on the required funds and/or shares as collaterals
for increasing the limits in order to avoid Square off of the position/s by AxisDirect for shortage of
margins.
21. I have taken a position on same scrip but on different days. Can I square off the second order
first?
No. FIFO (First In First Out) method is followed for square off.
Example: Assume you have bought 100 shares of INFOSYS on Monday and 40 shares of INFOSYS on
Tuesday. If you want to square off 110 shares, 100 shares bought on Monday will be squared off
first after which 10 shares from the shares bought on Tuesday will be squared off
22. What will happen to my E-Margin open position/(s), if during the day the last traded price for the
scrip which are subject to circuit filters, falls by more than 15% of the previous trading day closing
price on the last day of the E-margin position?
In case of E-Margin open positions, AxisDirect monitors the percentage change in the price of these
scrips which are subject to circuit filters.
If the last traded price of any such scrip falls by more than 15% on the last day of the Emargin
position, AxisDirect at its sole discretion shall attempt to cancel sell square off orders and then
square off E margin open position(s) at market price for that scrip, to avoid to open positions due to
the circuit being hit, without waiting for Normal Square Off time and with or without giving any prior
notice/intimation to the customers. If the situation so warrants then as a risk containment measure,
AxisDirect may square off all E-margin open position(s) at market price for that scrip. However,
AxisDirect does not guarantee square-off of open positions.
23. What will be the brokerage charged for E-Margin carry forward open positions?
E-Margin transactions will be charged Cash delivery brokerage, if the position is not squared off on
'T' day.
24. How do you calculate T+5/30 day period in exchange NSE/BSE for Compulsory Square off
of E-Margin buy positions?
T is called the Transaction (E-Margin Buy Trade) day. AxisDirect calculates 30 days period for
Compulsory Square off from this day. Only trading days are considered for calculating the
period of 30 days.i.e. Saturdays, Sundays and Trading Holidays falling in between this
period are not considered.
However, if there is/are settlement holiday(s) in between (bank holiday etc) this period,
such days are also excluded towards the computation of 30 trading days. However Interest/
delayed payment charges will be calculated for Saturdays, Sundays and Trading Holidays
falling in between this period also
25. What happens to my E-margin open positions in case of corporate action?
As soon as corporate actions like merger, amalgamation, division, right, bonus, reduction,
consolidation, special dividend, split, spin or any other such arrangements are announced,
fresh buying may not be allowed on such scrips under E-Margin.
However all E-margin open position(s) in such scrip(s) shall be auto squared off by
AxisDirect on a day prior to Ex-date, irrespective of its E-Margin square off due date to avoid
square off at Ex-corporate action prices.
Any client who wishes to avail benefit of corporate action should convert their E-Margin
open position to delivery before 03:00 PM on a day prior to Ex-Date.