Not all traders have cash available for trading purposes. Also, traders & investors would like to take benefits of their long term investments.
In order to put these to use, SAMCO StockPlus allows traders to use these shares as margins after pledging for carry forward trades in the NSE F&O & NSE CDS Segments. No fresh funds need to be locked up for initiating overnight positions. Clients can initiate these positions without any funds, only utilising margins against shares.
StockPlus enables you to leverage the power of your holdings for trading by providing margins against your stock holdings.
You need not have cash in their Trading Account to meet the Exchange SPAN & Exposure Margins. Stocks pledged under the StockPlus facility can be used for Margins.
Illustration: Say you wish to go long 1 Lot of NIFTY, & the margin required to initiate the position with the NRML Product type is Rs.48,000. Currently you would need to have to the entire Rs.48,000 in your SAMCO Trading Account as a cash balance.
With StockPlus, even if your SAMCO Trading Account balance is NIL, you can initiate this position if the value of your pledged shares exceeds Rs.48,000.
The Highlights of the StockPlus Product -
Trade with Margin against shares with Zero Cash Balance in the Equity Derivatives and Currency derivatives segments (Both Intraday and Positional Trades) and also in the Cash Market segment (via Bracket Order and Cover Orders)
No requirement to maintain 50-50 cash collateral ratios while initiating trades
You can initiate trades in Options too with margin against shares (both long and short options for intraday and positional basis)
You can sell your pledged holdings in real time by placing a real time sale request. You don’t need to un-pledge holdings the previous day to sell them.
Get interest rebate on ledger debits to the extent of collateral value or 50% of exchange margins, whichever is lower.
Existing subscribers of IntraPlus can either continue with IntraPlus and avail the benefits of their IntraPlus subscription or they can upgrade to StockPlus by paying a differential fee.
For Eg. If you subscribed to IntraPlus by paying Rs. 1000 on October 1, 2016 and upgraded to StockPlus on 1st April, 2017, then the pro-rata untilised amount of Rs. 500 (for 6 months) would be offered to you as a rebate and you would be required to pay only Rs. 1000 (Rs. 1500 – Rs. 500 rebate) plus applicable taxes and your subscription for StockPlus would be valid for a period of 1 year from 1st April, 2017.
When you upgrade from IntraPlus to StockPlus, all your existing pledged stocks are unpledged from IntraPlus and Pledged for StockPlus. You will be charged Rs. 60 per request which will be debited to your ledger.
In case your upgrade request is entered before 4 PM, you shall be able to start utilising StockPlus collateral from the next day. However, for all upgrade requests entered after 4 PM, clients shall be able to start utilising collateral only from the following day. With the introduction of the StockPlus product, the IntraPlus product is being discontinued and all existing subscribers of IntraPlus are being upgraded to StockPlus for free without any additional charges. However, the subscription will be valid for the original period only.
You can get margins upto 75% on the Value of your Holdings which includes Stocks & ETF’s. Your holdings will be subject to deduction of Haircut, which you can refer from the SAMCO StockPlus Margin Calculator.
You can pledge over 800 Stocks & ETF’s as Collateral to get trading Limits.
Haircut is the amount by which the value of your stock is deducted for the purposes of calculating the exact value of collateral holdings/limits. It is often quoted in percentage terms %. So for instance if the Value of holdings is Rs. 1,00,000 and the haircut percentage applicable is 10%, then the value of the collateral/margins available for trading purposes shall be Rs. 1,00,000 – Rs. 10,000 (10% of Rs. 1,00,000) = Rs. 90,000 (Holdings Value post haircut).
The haircut is different for different securities and is based on the volatility of the security, liquidity of the security amongst other factors.
Note – Clients subscribing to StockPlus alone will not be able to place NRML orders in the Cash Markets. Clients who are subscribers to CashPlus and StockPlus both will be able to place NRML orders however additional margin against shares will not be available for Cash NRML orders.
Clients are communicated about margin shortfalls through SMS & E-Mails. Clients may also be restricted from entering fresh orders in depending on the quantum of margin shortfalls. Clients should meet these margin shortfalls immediately, else margin calls will be generated which will lead to Square Off of Open Positions and Collateral.
Most brokers require a client to un-pledge their holdings and thereafter stocks are available for sale only the next day. However, that is not the case with SAMCO StockPlus where you can sell your shares even if you’ve not unpledged them the previous day.
You can sell your pledged holdings by placing an instant sale request from you SAMCO STAR Dashboard. Once you place a sale request, your stock shall be unpledged and sold at the market rates as a market order. Requests for instant sale will usually be processed in 30 minutes during market hours.
Instant sale requests for pledged holdings will be charged at Rs. 90 per request plus applicable taxes irrespective of the amount of shares pledged.
You can place pledge & unpledged requests from SAMCO Star throughout the day except from the Block window from 4 PM to 7 PM. All requests received till 4 PM shall be processed on the same day and the limits against the same shall be available on the next trading day. All requests entered after 7 PM shall be processed on the following day and the limits shall be available the day after. To place pledge and un-pledge requests, go to SAMCO STAR -> Holdings -> Pledge/Unpledge.
No! While most brokers require that Cash & Collateral be maintained at a ratio of 50:50, with SAMCO, clients can initiate positions only utilizing the collateral. There is no requirement of maintaining a 50:50 Cash collateral ratio.
You shall not be able to place unpledge requests in case your ledger balance is debit or in case of instant sale of pledged shares (this is to avoid double unpledging). Also, In case the security is not available is list of eligible securities, you shall not be able to place a pledge request.
Please note that if you are utilising your collateral for your margin obligations, then you’re unpledge requests may be rejected. In such cases, the Status of requests in the SAMCO STAR will carry a remark “Utilising Collateral”.
In case of any further queries, please raise a ticket on the Support Helpdesk in the Technical Department section.
Yes. You will be able trade options for intraday and positional with margin against shares in StockPlus. You can even initiate buy options trades with margin against shares however in case you do not have adequate cash margin, there may be margin shortfalls/margin calls which could lead liquidation of your collateral and/or positions.
Disclaimer - Use of StockPlus involves the use of financial leverage. Margin against shares carries a high degree of risk and it puts one’s share holdings to risk. By availing the facility of margin against shares, the client understands that in case of shortfalls/losses/extreme volatility, their holdings are bound to be liquidated which may result in a loss of capital. Trading on Margin can expose the client's capital to substantial risk and in certain cases; a client may sustain a total loss of capital. A client should be apprised of the risks of financial leverage and should consult their financial advisor to ensure that the use of the same is appropriate and in accordance with the client's risk appetite and financial position.
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