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When shares are pledged and collateral margin is received, a debit balance is reflected in the funds statement. Are there any delayed charges associated with this debit balance?

The collateral margin used for taking positions is not displayed in the funds statement, as the funds are not added or removed from the Zerodha account. Since the collateral margin is not included in the funds statement, there are instances where the funds statement will display a negative balance, but the delayed payment charges won't be levied for this negative balance.

Example Scenario

A margin of ₹1,50,000 is required to buy Nifty futures.

Opening balance on Kite: ₹70,000.
Collateral from pledging liquid funds: ₹45,000.
Collateral from pledging stocks: ₹60,000.

As per regulations, 50% of the margins blocked for F&O positions must come in cash or cash equivalent. The other 50% of the margin requirement can come from other non-cash equivalent collateral margins (margins received by pledging liquid funds are considered cash equivalent).

Fund utilisation is as below -

Component Available for use (INR) Utilized (INR) Balance (INR)
Opening Balance(Cash) 70,000 45,000 25,000
Cash Equivalent 45,000 45,000 0
Collateral margin 60,000 60,000 0
Total Margin Collected

The withdrawable balance is -

Opening balance - utilised amount
70,000 - 45,000
₹ 25,000.

Since the collateral margin is not included in the funds, the funds statement will display
Margin required for the position - Cash available, i.e. the opening balance.
=1,50,000 - 70,000
= (80,000)

Delayed payment charges will not be charged on such a debit balance.