How is the Pledge/Collateral Value calculated?

The amount available to you as collateral margins against pledged holdings is calculated based on the previous day's closing price of the concerned security, after deducting the applicable haircut.

For example:

ITC shares in demat account (Pledged)
Previous day's closing price
Rs. 250 per share 
Market value of pledged shares
Rs. 25,000
Exchange stipulated haircut % for ITC
Haircut amount
Rs. 2,500
Available collateral margins (against pledged holdings)
Rs. 22,500 (Rs. 25,000 - Rs. 2,500)

Your collateral margin value will vary daily based on market price fluctuations of the pledged securities.

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