Shares purchased using collateral margin under NRML order: If you buy an equity share using collateral margin under NRML order you need to pay the cash amount of share bought within 5 days of transaction date. In case your account doesn’t have sufficient cash balance, your shares will be liquidated on 6th day. Example: If you pledge shares of Company A worth INR 1lac, you will get a margin of INR 85000 post 15% haircut. If you buy Company B shares worth INR 85000 using this margin and don’t pay INR 85000 within 5days of transaction, Kotak Securities will liquidate your Company A shares depending on the shortfall.
Shares purchased using collateral margin under MTF: Shares bought under MTF using collateral margin will not be liquidated till the time your account is in credit. Please note it is mandatory for clients to pledge their shares bought under MTF within T+1 day. In case there is a debit shortfall in your account, your pledged shares or shares bought using margin will be liquidated basis the exposure.