Frequently Asked Questions

If you have less or no funds for trading, you may use this facility to get additional limits against the shares available in your Demat account by marking a collateral hold on those shares.

• Higher leverage 
• Zero Cost on Collateral held in Demat
• Enhanced buying power
• Ability to Sell shares Online when blocked

Collateral Sell facility is a feature by which client can sell those securities online, that they have placed as collateral hold for availing trading limits

Whenever you mark a collateral hold you can always release the same either on same day or on subsequent days. (You can release upto the extent of unutilised limit against Derivatives. To release the shares marked as collateral hold, you are required to select 'Collateral Release' button to effect the same.

The benefit of Collateral Facility is available in the following segments.

1. For taking Positions in Futures.

2. For taking Sell positions in Options.

The benefit of Collateral Facility is not available in the following segments.

• For taking positions in Cash, Intraday, Equity Cover, Mutual Funds.

• For taking Buy positions in Options.

The client can place online collateral hold request by specifying the name and quantity of scrip to be blocked as collaterals under the Demat Balance section after logging into your Trading account.

• he haircut % is different for different scrips, & limits decided by HDFC securities & are subject to change from time to time.
• The same is available on the website for customer reference 

No, only selected stocks are allowed to be used as collateral. HDFC securities will decide from time to time the basket of stocks that will be allowed as collateral. The list of stocks allowed as collateral can be viewed on www.hdfcsec.com. HDFC securities have the sole discretion to include or exclude stocks from the list based on liquidity, volume, group etc.

For the purpose of Limit calculation, securities are valued at previous day’s closing price after applying the applicable haircut. The haircut % for all eligible stocks can be checked on www.hdfcsec.com

For Example if 100 shares of ABC are provided as collateral and closing price of ABC is say Rs.1000 & haircut % is defined in system is 65%, then the limits provided will be calculated as under:

1. Market value of shares to be provided as collateral= (price x quantity) Rs.1000 * 100 = Rs. 1,00,000.
2. Applicable hair cut for Axis Bank = 65%.
3. Limits available from the above deposited  collateral = Valuation *Haircut% = 1,00,000 * 65% == Rs.65,000 

No, there is no upper cap on the no. of shares that can be placed on collateral hold.

No that can not be used for the same.

The client will receive these benefits as the owner of the shares.

The limits will increase immediately on marking a collateral hold on the shares in the Demat account.

Yes, the collateral limits will change basis of  the closing price of the specified scrip

The shares deposited as collateral against the trading limits will continue to remain on hold to the extent of un-utilised limit.The entire quantity marked on Hold can be Sold as collateral sell & Limit adjusted thereof.

Yes, HDFC securities may sell these securities to cover any losses or shortfall.

No, there is no limitation on the number of collateral release requests.

Yes, provided you have same scrip available in another demat accounts

Yes.

Under the Limits section on Total Available Limits >> Collateral Limits can be viewed & Under Available limits you can view the Product wise limits available to trade.

In the Order panel >> select SELL >> Select exchange>> Enter stock >> Select Product as  “Coll- Sell” >> Enter Qty >> MARKET order >>> Place order

No, Only Market orders are allowed in Collateral Sell

Yes you can use to the extent of 50% of the initial margin for more details kindly <Click Here>https://www.hdfcsec.com/Products/FAQ/23480