Rent Stocks
Stock renting and Borrowing
In case of borrower Margin will be blocked as follows:
Margin blocked and debited for the borrower includes the following:
1. Margin Value for borrowing
a. 125% of the stock's value
b. Risk margin + 100% of value
A or B whichever is higher
2. The full lending fee upfront
3. Daily adjustments based on price changes
Example: To borrow 100 Axis Bank shares at ₹1,500 each with ₹0.50 lending fee:
Margin Calculation will be as follows-
A. Risk Margin + 100% of value = 1,75,000
B. 125% of the stock’s value = 1,87,500
Higher of the two = 1,87,500
Lending Fee = 50
Total Value will be 1,87,550
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