What is a Retention Statement?
As per Running Account Settlement regulations, Geojit can retain a certain percentage of a client's total margin requirement and the balance (if any) will be paid out to the client's registered bank account.
|Segment||Retention % (pledge + cash margin)||If there is sufficient cash balance|
|Equity||100% of contract amount + 225% of (VaR + ELM)||* Up to 100% of contract amount will be retained as cash. |
* A minimum of 50% of VaR + ELM will be retained as cash (even if there is pledge margin)
|F&O||225% of required margin (SPAN + Exposure margin)||A minimum of 50% of SPAN + Exposure margin will be retained as cash (even if there is pledge margin)|
|Cash Balance (before margin)||Rs. 6,00,000 |
|Margin Requirement (for 3 lots of Nifty futures)||Rs. 2,50,000|
|2.25 Times the Margin||Rs. 5,62,500 (2.25 * Rs. 2,50,000)|
|Retention Amount||Rs. 5,62,500|
|Settlement Payout||Rs. 37,500 (Rs. 6,00,000 - Rs. 5,62,500) |
Scenario B: The client has an open F&O position and both cash and pledge margins is his trading account.
|Cash balance (before margin)||Rs. 5,00,000|
|Pledge margin ||Rs. 20,00,000|
|Margin Requirement (for 3 lots of Nifty futures)||Rs. 6,00,000|
|2.25 Times the Margin||Rs. 13,50,000 (2.25 * Rs. 6,00,000)|
|50% of Margin||Rs. 3,00,000 (Rs. 6,00,000 * 50%)|
|Retention Amount||Rs. 3,00,000|
|Settlement Payout||Rs. 2,00,000 (Rs. 5,00,000 - Rs. 3,00,000) |
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