Question regarding interest charged

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1

Need clarity on interest charged on Cash collateral.

Let’s say I have 10L fund. I invest it in Govt bonds, G-secs etc. and receive 9L margin.
Now this whole 9L margin comes under cash collateral margin.
If I use this entire 9L to sell options and leave the position overnight will I be charged any interest for using collateral margin?
ps: There is no other fund or non cash collateral pledged. So, 50-50 rule is not broken.

2

Hey @Shreykhemka ,

In this scenario, margin interest will not be charged as the 50:50 ratio has been maintained. However, if there is any debit in the ledger after taking the trade, interest will be applicable.

For better clarity, you can refer to the following link: Use of fund from pledging in F&O