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What does the Collateral (liquid funds) under Funds mean?

The Collateral (liquid funds) refers to the margin received from pledged liquid bees ETFs and liquid mutual funds after deducting a haircut and is considered as cash equivalent. The exchanges require that 50% of the margin for F&O positions must be in cash or cash equivalent collateral, while the remaining 50% can be in non-cash collateral margin. In case there is a shortfall in the cash margin requirement for overnight positions, and it is funded by non-cash collateral, a delayed payment charge of 0.035% per day or 12.775% p.a is applicable on the shortfall in the cash margin requirement. To learn more about pledging, see What is pledging, and how does it work?

If a client has pledged liquid bees ETFs or liquid mutual funds, the margin from pledge can be viewed in the Collateral (liquid funds) section on the funds tab on Kite.

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The list of approved instruments that can be pledged for margins and the applicable haircut % can be found in this list. (DOC)