Is there any Delayed payment charge on positions which are marked for E Margin(T+90)? Where can I see the delayed payment charge on late payment ?
Yes, delayed payment charges at the rate of 18% p.a will be charged on outstanding debit balance on all E-Margin positions.
The number of days delay would start from the exchange pay-in date for the settlement of the respective transaction and charged till the date the funds are actually received (eg. till the date of CTD or till the date of funds received/pay-out date after squaring off of positions).
There will be addtional GST charged of 18 % on Delayed Payment Charges as per Finance ministry
The delayed payment on outstanding debit balance on a per day basis would be displayed under
History -> Funds Settlement -> Delayed Payment Charges link under your Trading section.
For example :-
i. E Margin position from Funds only.
a) E-Margin Position squared off on T+2
You bought 100 qty shares of “Scrip A” at Rs. 1000 under E Margin on Apr 21 , 2014 with 20% Margin and sold full qty on Apr 23, 2014. i.e on T+2nd day , In this example Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 21 ,2014 + 2 days =Apr 23 , 2014
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 23, 2014 + 2 days = Apr 25, 2014
No. of days delay in payment = Apr 23, 2014 to Apr 25, 2014 = 2 days delay
Thereby, for the above case say interest on Delayed payment charge is 1.5% per month or alternatively 18% p.a. then this would be calculated on the outstanding debit balance for 2 days delay as follows:
Delayed payment charge on outstanding debit balance per day = outstanding debit balance * Delayed payment % per annum * 1/ 365 =80000* 18%*1/365 = Rs. 39.45/- per day or Rs.78.9 for 2 days .
b) E-Margin Position squared off on T+5
You bought 100 qty shares of “Scrip A” at Rs. 1000 under E Margin on Apr 21 , 2014 with 20% Margin and sold full qty on Apr 28, 2014.i.e on T+5th day , In this example Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr21 ,2014 + 2 days =Apr 23 , 2014
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 28, 2014 + 2 days = Apr 30, 2014
No. of days delay in payment = Apr 23, 2014 to Apr 30, 2014 = 7 days delay
Thereby, for the above case say interest on Delayed payment charge is 1.5% per month or alternatively 18% p.a. then this would be calculated on the outstanding debit balance for 7 days delay as follows:
Delayed payment charge on outstanding debit balance per day = outstanding debit balance * Delayed payment % per annum*1/ 365=80000* 18%*1/365= Rs. 39.45/- per day or Rs.276.16 for 7 days .
ii. E Margin position Convert to Delivery (CTD).
a) E-Margin CTD done on T+2nd day
You bought 100 qty shares of “Scrip A” at Rs. 1000 under E Margin on Apr 21 , 2014 with 20% Margin and converted the full qty to “Delivery” on Apr 23rd , 2014. i.e on T+2nd day , In this example Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 21 ,2014 + 2 days =Apr 23 , 2014
CTD done on 23rd Apr 2014
No. of days delay in payment = Apr 23, 2014 to Apr 23, 2014 = 0 days delay
Thereby, no delayed payment charge will be levied for the aforementioned transaction.
b) E-Margin CTD done on T+5th day
You bought 100 qty shares of “Scrip A” at Rs. 1000 under E Margin on Apr 21 , 2014 with 20% Margin and converted the full qty to “Delivery” on Apr 28, 2014. Ie on T+5th day , In this example Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000) * 20% = Rs 20000
Outstanding debit balance = (1000 * 100) - (100*1000) * 20% = Rs 80000
Buy transactions Exchange Payin Date = T+2 i.e. Apr 21 ,2014 + 2 days =Apr 23 , 2014
CTD done on 28th Apr 2014
No. of days delay in payment = Apr 23, 2014 to Apr 28, 2014 = 5 days delay
Thereby, for the above case say Delayed payment charge on Outstanding debit balance is 1.5% per month or alternatively 18% p.a. then this would be calculated on the outstanding debit balance for 5 days delay as follows:
Delayed payment charge on outstanding debit balance per day = outstanding debit balance * Delayed payment % per annum * 1/ 365=80000*18%*1/365 = Rs. 39.45 /- per day or Rs.197.26 for 5 days.
iii. E Margin position from Collateral
You bought 100 qty shares of “Scrip A” at Rs. 1000 under E Margin on Apr 21 , 2014 with 20% Margin and sold full qty on Apr 28, 2014. i.e on T+5th day , In this example Delayed payment charges on outstanding debit balance would be calculated as follows:
Margin amount = (100*1000)*20% = Rs 20000 , this margin is adjusted against existing collateral limits only , no bank pay-in for margin amount.
Outstanding debit balance = (1000 * 100) = Rs 100000
Buy transactions Exchange Pay-in Date = T+2 i.e. Apr 21 ,2014 + 2 days =Apr 23 , 2014
Sell Square off transactions Exchange Pay-out Date = T+2 i.e. Apr 28, 2014 + 2 days = Apr 30, 2014
No. of days delay in payment = Apr 23, 2014 to Apr 30, 2014 = 7 days delay
Thereby, for the above case say Delayed payment charge on Outstanding debit balance is 1.5% per month or alternatively 18% p.a. then this would be calculated on the outstanding debit balance for 7 days delay as follows:
Delayed payment charge on outstanding debit balance per day = outstanding debit balance * Delayed payment % per annum * 1/ 365 =100000*18%*1/365 = Rs. 49.32 - per day or Rs.345.24 for 7 days.