There is no leverage for NRE accounts and the purchase or sale are to be settled paise to paise as per RBI guidelines.
The following are the leverage benefits extended to NRO accounts.
NRML for Delivery Based Trades
NRML is the product type under which you will be able to get leverage as per the details given below.
|Segment||Carry Forward Margin (Product type NRML)|
|Equity Cash||3Xfor the F&O Scrips, 2X for Scrips where the VAR margin <=20%, and 1X for scrips where the VAR margin > 20%|
|Equity Futures||SPAN+ MTM Margin (Exposure margin)*|
For example with Rupees 1 lakh margin or with a collateral value of 1lakhs (after haircut) you will be able to buy upto 3 lakhs. The remaining 2 lakhs can either be settled by transferring funds or by selling the stocks before Trade + 5 working days. In case these are not settled, the stocks held under house account towards debit will automatically be sold on T+ 5th working day. An interest at 2% per month will be levied for debits held for more than 2 working days.
MIS- For Intra-Day trades
MIS is a Intraday leverage product under which you will be able to square off your position during the day before 3.14pm failing which the system will auto square off the same from 3.15pm OR at anytime when the position hits beyond 80% MtoM whichever is earlier. We have given below a table explaining the number of times exposure is provided under MIS product.
|Segment||Intra-dayLeverage under product code MIS|
|Equity Cash||10X for all stocks trading in futures segment where (VAR+ELM) <=20%.|
|Equity Futures||SPAN+ MTM Margin (Exposure Margin)|
Margin Trade Funding (MTF)
This is a unique product of Tradeplus that allows you to buy stocks upto 4 times of your collateral value and cash value and hold it for a maximum of 1 year. You may basically leverage your stocks and take positions without deploying cash for a maximum of 1 year. Click here to know more on MTF.