I see a deduction "Delayed payment charges" on my ledger? Why is this?
You could be charged 'delayed payment charges' in two scenarios:
- A negative balance in your account- If you have utilized funds higher than the amount available in your account, your account will result in a debit balance. For the additional amount, interest will be charged.
- Over-utilisation of collateral value- Exchanges stipulate that for overnight F&O positions, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. If you use collateral margins in excess of 50%, interest is charged on the excess amount utilized. Read more about pledging here.
You can view your Interest statement here.
Note: Interest charges are computed on a daily basis and charged once at the end of every month. Interest is levied at 18% a year or 0.05% per day on the outstanding amount. 18% GST will be charged on interest accrued up to 31 December 2018.