Update:
In accordance with the latest regulatory updates on Credit for Sale, we have introduced modifications to our Risk Policy. As you might be aware that Credit For Sale benefit can now only be provided after doing the early pay-in of securities
To ensure a seamless transition, these changes will be implemented gradually over time.
| Case | Selling of Stock | Current | Revised | Phase |
|---|---|---|---|---|
| (a) | From Free Holding | 80% | 80% | Phase 2 |
| (b) | CUSA | 80% | 0% | Phase 2 |
| (c) | BTST | 80% | 0% | Phase 2 |
| (d) | Margin Pledge | 80% | 80% or (100% less Haircut value whichever is minimum) | Phase 1 |
Consider the below examples for better understanding:
(a) If you sell stock from Free Holding - You will get flat 80% of the CFS benefit
(b) If CUSA stock is sold / You sell stock from CUSA - You will get no CFS benefit
(c) If you buy the stock and sell on the next day (BTST) - You will get no CFS benefit
(d) If you sell stock which is Pledged for Margin - You will get a minimum of 80% or (100% less the haircut value of the stock).
| Stock Name | Haircut | CFS Benefit |
|---|---|---|
| Stock A | 10% | Min (80%, 90%) = 80% |
| Stock B | 15% | Min (80%, 85%) = 80% |
| Stock C | 35% | Min (80%, 65%) = 65% |
We will be rolling out Phase 1 (Case: d) from 10th August, 2023 and we will update the date of implementation of Phase 2 (Cases: a, b, and c).