No, you will not be charged delayed payment charges on the debit balance that appears when you use collateral margin from pledged shares.
Your funds statement does not display the collateral margin you use for taking positions because Zerodha does not add or remove these funds from your account. Since your funds statement excludes collateral margin, you will see instances where your funds statement displays a negative balance, but you will not be charged delayed payment charges for this negative balance.
Example scenario
You need a margin of ₹1,50,000 to buy Nifty futures.
Your available funds:
- Opening balance on Kite: ₹70,000
- Collateral from pledging liquid funds: ₹45,000
- Collateral from pledging stocks: ₹60,000
Regulatory requirements
Regulations require that 50% of the margins blocked for F&O positions must come in cash or cash equivalent. You can use other non-cash equivalent collateral margins for the remaining 50% of the margin requirement. Margins you receive by pledging liquid funds are considered cash equivalents.
Fund utilisation breakdown
| Component | Available for use (INR) | Utilised (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 |
|
1,50,000 |
|
Your withdrawable balance calculation
You can calculate your withdrawable balance as: Opening balance - utilised amount = ₹70,000 - ₹45,000 = ₹25,000
Funds statement display
Your funds statement only reflects the cash movement, not the collateral usage. So it will show:
- Margin required – Cash available = ₹1,50,000 – ₹70,000 = ₹(80,000)
This ₹(80,000) negative balance simply reflects the part of your margin met via pledged collateral, not an actual debit due to borrowing.
Hence, you will not be charged delayed payment charges (DPC) on this debit balance.