5paisa Margin Exposure Limit, Leverage for Intraday and F&O

1. 1. Does 5paisa charge any interest for exposure money?

   Yes, 5paisa charges interest rates on the amount loaned to customers as margin funding. The 5paisa margin interest rate is 18% per annum calculated monthly.

   5 paisa margin funding is a facility offered by the stock broker to its customers. A margin funding is a loan like a facility wherein a customer can trade in select stocks (approved by Exchanges and 5paisa) by paying a fraction of the total trade value. The rest of the amount is paid by the stock broker to the exchange.

   The margin limits vary depending on the trade type and stocks category. For example, 5paisa margin for delivery limit is up to 4x. So, if a client has ₹10,000 in his account then he can trade up to ₹40,000. Similarly, 5paisa intraday margin in up to 20x. So, with ₹10,000 in his account, an intraday trader can trade up to ₹2 lakhs.

   5paisa Margin Funding Limits

   Trade Segments	Margin Limits
   Equity Delivery	Up to 4x (Category E 4x, A 3.5x, B 3x, C 2x, D 1.5x)
   Equity Intraday	Up to 20x
   Equity Future	Intra-day: 3.5x | Carry forward: 1x (no margin)
   Equity Option	Intra-day: 1x | Carry forward: 1x
   Currency Future	Intra-day: 1 time | Carry forward: 1x
   Currency Option	Intra-day: 1x | Carry forward: 1x
   Commodity Future	NA
   Commodity Option	NA

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2. 2. What is the maximum time limit available to resettle the 5paisa exposure amount?

   There's no maximum time limit mentioned to resettle the 5paisa exposure amount in its terms and conditions. However, 5paisa charges interest rates on the margin amount loaned at 18% per annum calculated monthly. The interest will keep accruing until it is paid. So, the more you delay, the more interest you have to pay.

   5paisa margin funding is a loan like a facility backed by collateral. The collateral, in this case, is the securities (stocks, derivatives etc.) brought in a margin funded trade. As per the 5 paisa margin trading facility terms and conditions-

   1. While activating the 5paisa margin trading facility, the client will authorize 5paisa to keep securities bought under the margin funding as collateral. All corporate benefits from the pledged securities such as bonuses, dividends etc., will also be pledged as collateral till the funded margin amount is repaid by the client.
   2. 5paisa allows changing the securities for collateral. So, if you bought Reliance shares in Margin funding Facility and the shares are pledged as collateral then you can replace it with stocks (of the same category) owned by you. The market value of the shares must be equal.
   3. 5paisa reserves the rights to sell the securities in case of non-payment of margin amount.

   Excerpt From 5Paisa Margin Trading Terms & Conditions

   • By agreeing to avail Margin Trading Facility with 5paisa, client is deemed to have authorized 5paisa to retain and/or pledge the securities provided as collateral or purchased under the Margin Trading Facility and any corporate benefit thereon, if any, till the amount due in respect of the said transaction including the dues to 5paisa is paid in full by the client.
   • The client has a right to change the securities collateral offered for Margin Trading Facility at any time with prior notice in writing to 5paisa so long as the securities so offered are approved for margin trading facility.
   • 5paisa may immediately without any notice liquidate the security/collateral and or close out the position in the happening of the following events:
   • if any instrument for payment of Margin Money / Monies is/are dishonoured.

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