Why is the daily margin statement showing a value in the 'Mutual fund' segment, even though I've never bought mutual funds on Kotak Securities?

A daily margin statement is a report that contains the details of margins deposited (fund transfers, collaterals pledged) along with details of margins blocked for positions taken/held. The main objective of sending a daily margin statement to the clients is to inform them about the following:

  • Margin required by the exchanges for the positions taken or held.

  • Availability of free margins in the account to take new positions.

  • Margin shortfall in the account so that the clients can maintain adequate funds to avoid any margin shortfall.

Daily Margin Statement is a regulatory report, with the format and details prescribed by SEBI. This report includes the value of Mutual Funds pledged as collaterals, as a mandatory field. If you do not have any pledged Mutual Funds, the value here will be zero.