The CashPlus facility allows clients to get leverage for Equity Delivery i.e purchase of shares in the Cash Markets - NSE and BSE. SAMCO is India’s first and only discount broker to offer this facility. Now, Enter a buy position for shares in the equity delivery segment, by blocking only a part of the amount required for the full transaction. Get Leverage upto 4x based on the shares bought in the Equities segment. In simple terms, you can now buy stocks of up to Rs. 4,00,000 with only Rs. 1,00,000 Cash available in your trading account. SAMCO will fund the balance Rs. 3,00,000 to fulfill your exchange obligations.
CashPlus enhances the buying power of a customer facilitating them to buy more shares even with a lower amount of Cash available in the trading account. CashPlus will enable you to Trade BIG even if your low on cash balance. Clients can carry debits on account of purchase of shares by paying the prescribed margin. You can buy shares of up to Rs. 4,00,000 by blocking only Rs. 1,00,000 in margins from your trading account. SAMCO will provide the balance Rs. 3,00,000 to fulfill your exchange pay-in obligations.
You shall be required to pay an annual subscription fee of Rs. 1000 per year in order to sign up for the CashPlus Facility. This payment is to be made from the SAMCO STAR. You shall also be required to pay a delayed payment charge of 0.05% per day for each day on the outstanding debit balance of your account. In case of zero or credit balances, no such charges shall be levied.
In case the margins required for an order exceed the margins available in the “NRML” product type, your orders shall get rejected. For instance, If the Price of XYZ Limited is Rs. 100 per share and leverage available is 2x, then the margin required for 1000 shares of XYZ Limited is Rs. 50,000. In case the cash available in the trading account is less than Rs. 50,000, then this order shall be rejected.
Margin Positions can be checked in the SAMCO STAR in the "Portfolio" tab in the Menu bar. Margin Positions in the Trading terminals can be checked in the net position window. For Eg. In the SAMCO Trader, Margin Positions can be checked in the F11 Window by selecting the Netwise Overall Option.
You can carry outstanding debits on the account for as long as the margins maintained in your account exceed the prescribed margins. Note that client accounts shall be subject to the monthly/quarterly settlement compliance requirements of the SEBI and the stock exchanges.
Average Price of the open positions shall be computed on a FIFO (First-In-First-Out) basis. Hence the open average price displayed in the SAMCO Trading Terminals and SAMCO STAR shall be the price as computed on a FIFO Basis.
The only selling restriction in the CashPlus product are that positions built in the NSE can be sold on the NSE only and those built on the BSE can be built on the BSE only. Positions built on the BSE cannot be sold on the NSE and vice-versa. No other selling restrictions are applicable in the CashPlus Product. Stocks bought on T Day can be sold at any time i.e. T-day itself and T+1 onwards.
Existing Intraday positions can be converted to CashPlus positions by using the Position Conversion window and converting positions to the “NRML” product type in the SAMCO Trading Terminals. This shall be required to be done prior to 3:15 PM before close of markets.
Free and unencumbered holdings shall be visible in the SAMCO STAR Back office in the Holdings option. Note that stocks bought in the CashPlus NRML product type will not appear in holdings and instead appear in Margin Positions. In the Demat Statement, Free and unencumbered holdings shall be visible. However, holdings on account of CashPlus positions shall not be visible in the Demat Statement since they shall be blocked in the Client Beneficiary Account of SAMCO Securities Limited until the clearance of outstanding debit balances.
All margin positions bought forward compulsorily need to be squared off. Clients can convert open margin positions by selling them under the “NRML” product code and then buying fresh stock in the “CNC” product type by blocking 100% of the margins required.