Comment on ETF - Exchange Traded Funds
commented on
04 Aug 2014, 01:20 PM
N, this is a regulatory issue. If we provide you margin based on stocks in your demat, it becomes a funding issue which we/any broker are not allowed to do. When you pledge the BEES, we pledge it at NSE and they release the margins for your trading account. This will be the only way to do this. What many other brokerages do is, instead of pledging with NSE they keep it in their pool account and give you margin, which we don’t want to do as a business.