Frequently Asked
Questions
SAMCO Securities Limited - SEBI Reg. No. INZ000002535
SAMCO Commodities Limited - SEBI Reg. No. INZ0000013932
SAMCO Securities Limited - CDSL: IN-DP-CDSL-443-2008
Example:
If you place 3 successful orders using the Samco platform and the brokerage amounts to INR 60 (Rs.20 per order X 3 orders). The next day INR 60 will be credited to your ledger. Effectively making the transactions brokerage free for you.
For Example:
You Logged in to the Samco Application on 1st of April 2018, Your 30 days of brokerage cash back will start from 1st April 2018 and end on 30th April 2018 at 12 am Midnight. All Trades made during these 30 days using the Stock Note Platform are eligible for 100% Brokerage cash back.
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- You Can Download the Forms from our website, fill it up and send it to us.
- You can Request a Call Back by filling in your contact details and we'll get in touch with you.
- You can Call our sales team on +91 022 2222 7777 | +91 022 4503 0450.
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- Bank Details – Cancelled cheque or Bank Statement/Passbook copy
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- Proof of Income (6 months bank statement or ITR Return or 3 months salary slip)
In case of physical account opening - If all your documents are in order, your account will be opened within 24 hours of receiving the completed documents. Demat account takes a little bit longer but we endeavour to open the Demat account too within 48 hours.
- Sale requests - eSAMCO account holders shall not be able to sell stocks for delivery in the cash markets without placing a “release for sell” request from SAMCO STAR. This is because since we do not have your power of attorney to move your stock from your Demat account, we cannot pay-in your shares for the purposes of exchange obligation of securities. This can result in an auction of your shares sold on account of non-delivery. Once a client places a special “release for sell” request from SAMCO STAR, that acts as an authorisation to move your stock from your DEMAT account for settlement against exchange obligation.
- No Upgrades - eSAMCO account holders cannot upgrade to CashPlus, StockPlus and IntraPlus.
- Minimum Balance - eSAMCO account holders will be required to maintain a minimum balance of Rs. 1000.
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- By way of Payment Gateway on the SAMCO Trader or Back office.
- By depositing funds by way of NEFT/RTGS to your trading account; You can find the transfer details in our Funds & DP section.
- By depositing a cheque in your trading account.
Margins
SAMCO has different margin requirements and leverage available for different segments as under :
Equities | For Intraday, up to 5x depending on the product type and stock selected. Up to 4x delivery leverage with SAMCO CashPlus. |
Equity Futures | Full NRML margins as mandated by exchange. Find the equity futures margin details on our Equity Derivatives Margin Calculator page. |
Equity Options | No Leverage for purchase of options. Have to maintain full NRML margins as mandated by exchange for options writing. |
Currency Futures | Full NRML margins as mandated by exchange. Find the currency margin details on our Currency Derivatives Margin Calculator page. |
Currency Options | No Leverage for purchase of options. Have to maintain full NRML margins as mandated by exchange for options writing. |
Commodity Futures | Full NRML margins as mandated by exchange. Find the currency margin details on our Commodity Derivatives Margin Calculator page. |
SAMCO clears with the exchanges on T day so overnight exchange margins are the lowest in the industry.
Platforms
- SAMCO Trader – Our Desktop .EXE Version for Windows.
- SAMCO Web 5 – An HTML platform to allow you to place your orders on the move which functions on all web browsers, tablets and mobile phones.
- SAMCO Mobile Application – Our Mobile Application for iOS and Android.
- SAMCO Call & Trade – You can also Call & Trade by calling +91 – 22 – 2222 7777 | +91 22 - 6169 9000 from 9.00 AM – 11.55 PM.
Tools
Brokerage Calculators – Helps you calculate your brokerage and other regulatory costs upfront.
Support
- Call US - You can call us between 9.00 AM – 11.55 PM on +91 – 22 – 2222 7777 | +91 22 - 6169 9000.
- You can raise a ticket with our Support Helpdesk.
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The exit of a low-risk leg of a hedged trade is a common cause of peak margin penalties. In some cases, margin penalties may be imposed despite a client closing both legs of a hedged transaction. It can happen if the peak margin snapshot is taken when one leg of the trade has been closed but the other has not or yet to be closed.
Example:
- Let’s assume that Client A wants to trade in F&O and transfers ₹1,00,000 to his/her trading account
- A takes a NIFTY long position of May contract - margin blocked is ₹60,000
- A takes a NIFTY short position of June contract - margin blocked is now ₹20,000/- (on account of the position currently being hedged; free balance in account: ₹80,000/-)
- A takes a BANKNIFTY long position of May contract - margin blocked ₹60,000/-
- In this case, A has fulfilled all margin requirements
- A now closes the first leg of the NIFTY position (long May), as a result of which the total margin required in the account goes up to ₹1,20,000/-
- NSE takes a snapshot of the position at this instance and captures ₹1,20,000/- as the margin required
- A closes the other leg of NIFTY, as a result of which the margin required drops to ₹60,000/- (Since only the BANKNIFTY position is open)
In this example, an unnecessary penalty gets levied for being short on peak margins, despite the client having squared up the outstanding positions and complying with the margin requirements on an end-of-day basis.
A peak margin was introduced to curb excessive leverage provided by some brokers, which put the entire market at risk. Previously, margins were only calculated on End of Day (EOD) positions, brokers granted clients excess leverage intraday and required them to close positions before the end of the day.
As a result of this excess leverage, SEBI required clearing corporations to take snapshots of intraday positions at least four times a day and calculate margins on these positions. According to SEBI's circular, here's an excerpt:
(i) Clearing Corporations shall send minimum 4 snapshots of client wise margin requirement to TMs/CMs for them to know the intraday margin requirement per client in each segment. The number of times snapshots need to be sent in a day may be decided by the respective Clearing Corporation depending on market timings subject to a minimum of 4 snapshots in a day. The snapshots would be randomly taken in pre-defined time windows.
Due to this, the clearing corporation today takes 4 snapshots of positions held by its clients at random intervals. Any shortfall in margin is subject to a penalty if the broker does not report available margins against the highest margin value across the 4 files. The circular explains this in detail:
(ii) The client wise margin file (MG-12113) provided by the CCs to TMs/CMs shall contain the EOD margin requirements of the client as well as the peak margin requirement of the client, across each of the intra-day snapshots.
(iii) The member shall have to report the margin collected from each client, as at EOD and peak margin collected during the day, in the following mariner:
a) EOD margin obligation of the client shall be compared with the respective client margin available with the TM/CM at EOD.
b) Peak margin obligation of the client, across the snapshots, shall be compared with respective client peak margin available with the TM/CM during the day.
Higher of the shortfall in collection of the margin obligations at (a) and (b) above, shall be considered for levying of penalty as per the extant framework.
The intention of the market regulator is undeniable, but the manner in which the circular has been implemented is not without flaws. Samco does not provide any excess leverage to clients, and always stipulates the collection of upfront margins when clients are taking positions. However, there are circumstances where the margins shoot up after clients have entered into positions, resulting in a shortfall. There is no way for a broker to control/know the margins charged by the Exchange in advance. Here are examples:
Increase in margins after EOD upon expiry of weekly contracts
As you are aware, there are weekly option contracts available for various indices: BANK NIFTY, NIFTY, and FINNIFTY. There are often instances where a client may have a hedged position, holding one leg in a weekly contract and another leg in a monthly contract. On expiry day, in the event that a client does not square off the weekly contract (expiring that day), the margins shoot up after market close. Margins are lower for the hedged position until 3:30 PM, and shoot up thereafter.
This causes a great deal of inconvenience, with the exchanges often levying unnecessary penalties due to the margin shortfall in the end-of-day file. The fact that such a shortfall is likely to occur may not immediately be apparent to a client either.
Peak margins due to lag in closing both legs of hedged position
This example is in continuation of the above point. After implementation of the peak margin framework, it is possible for a penalty to be levied despite a client having closed both legs of a hedged trade. This can happen in case the peak margin snapshot is taken at a time when one leg of the trade is closed and the other is yet to be closed.
Example:
- Let’s assume that Client A wants to trade in F&O and transfers ₹1,00,000 to his/her trading account
- A takes a NIFTY long position in May contract - margin blocked is ₹60,000
- A takes a NIFTY short position in June contract - margin blocked is now ₹20,000/- (on account of the position currently being hedged; free balance in account: ₹80,000/-)
- A takes a BANKNIFTY long position in May contract - margin blocked ₹60,000/-
- In this case, A has fulfilled all margin requirements
- A now closes the first leg of the NIFTY position (long May), as a result of which the total margin required in the account goes up to ₹1,20,000/-
- The system of a trading member raises an alert and informs A of short margins
- NSE takes a snapshot of the position at this instance and captures ₹1,20,000/- as the margin required
- A, on receipt of an alert from the trading member, closes the other leg of NIFTY, as a result of which the margin required drops to ₹60,000/- (Since only the BANKNIFTY position is open)
In this example, an unnecessary penalty gets levied for being short on peak margins, despite the client having squared up the outstanding positions and complying with the margin requirements on an end-of-day basis.
All brokers are subject to audits by internal auditors, concurrent auditors, inspections by stock exchanges - both onsite and offsite, inspection by market regulator SEBI. As such, it is unlikely that a broker is making money by posting entries on the client’s ledger in the garb of “margin penalty”.