What is the Early Pay-In (EPI) margin benefit and how does it work?

Early Pay-In (EPI) is a facility allowed by exchanges (WEB) that allows you to deliver in advance the shares you sell through a block mechanism on T-day itself. When you place a sell trade:

1. The shares in your Demat account are blocked (not debited immediately) and marked for EPI.
2. These blocked shares are later transferred to the Clearing Corporation.
3. The Clearing Corporation treats the value of these blocked shares as upfront margin for your sell trade, so no separate margin is required for that transaction.
4. Once the sale proceeds are credited to your ledger at Jainam, 80% of the amount can be used as margin for new trades on the same day.

Main advantages of using EPI:

1. No upfront margin needed for that sell trade.
2. At Jainam, 80% of the sale proceeds are available as margin on the same day (instead of T+1).
3. Helps avoid margin shortfall penalties against margin obligation from the exchange. 

RELATED FACTS:

• This EPI margin benefit is enabled by default for all Jainam clients. If a client does not wish to use this facility, their RM or branch must send an opt-out request to surveillance@jainam.in.