What happens if the value of the stock pledged at Jainam decreases or increases?

Jainam collects mark-to-market (MTM) margins daily based on the buy price of your holdings pledged. These MTM margins are reset each day, and new MTM margins are blocked.

If the value of pledged stock decreases: - MTM is collected for negative MTM when the market value of your pledged holding decreases. Such a case may lead to margin shortfall.

If the value of pledged stock increases: -  In case of an increase in the value of collaterals/pledged stocks, Jainam at its sole discretion, has the option of granting further exposure to the client, subject to applicable haircuts.


RELATED FACTS: -

• If you buy the same stock on different days, the MTM calculations are done separately for each day’s average price, even though your overall holdings are shown as a combined total.

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• In case of an increase in the value of collateral stocks, Jainam has the option of granting further exposure to the client, subject to applicable haircuts. However, no funding will be provided for the increased value of MTF-funded stocks. To know more, see What happens if the value of the MTF-funded stocks at Jainam decreases or increases?

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• Only those equity shares that are in the Group 1 category in both NSE and BSE are allowed as eligible securities to be bought as well as pledged for meeting the margin requirement for MTF. Check the approved list of securities for MTF at Jainam.