What is Margin Against Shares?
Margin against shares is basically a value added service. It allows you to get exposure/ margin against shares in your demat account by keeping them as collateral. The collateral value of these shares is calculated after applying a hair-cut.
The total limit provided for trading under this feature is subjected to having Cash to Collateral ratio of 40:60. This means that to get the complete benefit of your collateral, 40% of the margin will have to be in cash.
- List of scrips available for pledging under MAS: The list of scrips available for pledging under MAS has about 850 stocks in it. This list is decided as per TradeSmart Online’s internal risk policies. It will be reviewed periodically and updated accordingly.
- Charges: The pledging charges will be Rs 60 + service tax per scrip irrespective of the quantity. So if you have pledged 100 quantity of Reliance and 200 quantity of ACC you will be charged Rs.120 (60*2) exclusive of the service tax. The pledge charges will be debited from your ledger the day you place the pledge request. No charges will be applicable for unpledging.
- Brokerage Plans: MAS is available for 0.007% (Value Plan) and Rs 15 (Power Plan) brokerage plans only.
- Trading Platform: It will be available for all NEST platforms (Desktop, Mobile and Browser).
- Demat account: To avail MAS facility for your account, you should have a online demat account.
For more details about MAS please read our blog post here