Margin Update and Allocation of Funds


What is meant by Allocation of funds and Why is it important?

Allocation is very important now as fund transfers done by you, if any, during the day, will be updated in margin only after allocating the funds to Clearing Corporation. Earlier, you could have traded immediately after transferring funds to us. Now, you can trade only, after the funds are allocated to the CM. 

Allocation simply means, allotting funds transferred by a client, to the Clearing Corporation against his/her UCC and in the segment in which he/she trades. For eg., Let us suppose Client A and Client B trading in F&O segment have transferred 50 lakhs and 20 Lakhs respectively. We, the Trading Member, will allocate it to the Clearing Member and add the 50 lakhs against the UCC of Client A in F&O segment and 20 lakhs against UCC of Client B in F&O segment.

Who are your Clearing members?

Clearing Members have an important role in current scenario as we need to allocate funds to Clearing Corporation through a Clearing Member. Here are the details of our Clearing Members


Clearing Member

Equity Cash

We clear it on our own through NCL  

Equity & Currency  & Commodity Derivatives

Orbis Financial Services Limited  

(Professional Clearing Member) 


Why is it taking time for updating my margin?

Ideally it should not. If you hold an equity cash or derivative account with us and transfer funds during the market hours, we will immediately allocate it to the Clearing Corporation/ Clearing Member and then add it to your Margin in the trading terminal. It should not take more than 3 minutes to  be updated. If you hold only MCX derivative account with us and then transfer funds, we will then allocate it through our PCM Orbis and subsequently update margin in the trading terminal. This will take a longer time, sometimes up to 1 hr from the time of transferring funds to be updated as MCX has not yet provided us the API to allocate funds automatically and this needs to be done m Hence, we strongly suggest you to either transfer funds well in advance or open a free online demat account to get your funds updated anytime you transfer it to us.

Why am I blocked from transferring funds?

This will occur if you try transferring funds via UPI in Rocket between 6pm and 7pm. This is because, all funds received by us on a given day, should be paid to Exchange's Upstreaming account after deducting the net obligation before 7pm. Therefore, we will start the process of transferring around 5.30pm to 6pm and would therefore, not accept fresh pay-ins from 6pm to 7pm.

Funds transferred after 7.30 pm is not getting added to Commodity Trading limits. Why?

As seen earlier, funds transferred during trading hours can be added to Trading limit or Margins only after allocating the transfer to the Clearing Corporation. We do the allocation to Clearing Corporation using the API facilities provided by them. However, in case of Commodity segment, MCX has not yet provided us an API to update allocation of funds online. We therefore, had suggested clients having only Commodity account to open a NSDL account so that, their fund transfers could be updated seamlessly by allocating it to Cash Clearing Corporation (NCL) instead of allocating to MCX. This allocation also, can be done only till 7.30pm. Any fund added after 7.30pm cannot be allocated online and hence, funds transferred after 7.30pm will not be updated in margin for trading. Therefore, all fund transfers are to be done before 7.30pm to be added to trading limit.

I am getting an email stating that 'your Clearing member has allocated xxx cash component as..' What is this?

These messages are sent by Clearing Corporation to clients directly to keep them informed about the allocation that we do. This to ensure transparency of details reported by us to the clearing members. All that you got to do is to check if the funds mentioned in that email is your actual balance in the segment.

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