Understanding client margin report
The client margin report is a mandatory report which needs to be sent to the client in addition to the contract note. This report indicates the margin you require for a position and the margin you have. In short do you have excess or shortfall of margins ?
Segment: NSE-CM indicates NSE Cash Market Segment, NSE-F&O indicates NSE-Futures & Options Segment, BSE-CM indicates BSE - Cash Market Segment and NSE-CD indicates - NSE - Currency Derivative segment.
Trade Day: The client margin report will be sent on T (trade day).
Funds (A): This refers to the funds available in your ledger balance.
Total Upfront Margin (F) : Margin required for the positions taken on T Day or the position carry forwarded from previous day.
MTM (G) : Mark to Market Loss if any for the positions held on T Day is earmarked with the closing price of the day.
Important points to be noted:
Negative value in Column K indicates shortfall in Margin.
When you sell shares from your Depository account, you will receive the credit in your ledger for sale amount with value date of T+2 days. However the client margin report is sent for T day. Thus it is possible that your funds column (A) may be zero and the report may indicate that you have funds due payable to the broker which is the sum of margins on your positions. These dues will automatically be reversed once your shares are delivered and sale proceeds received on T+2.