Daily Margin Report

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The Daily Margin Report (DMR) summarises the following for you :

  1. The Exchange Level Margin Requirement and the availability (The difference is shortfall)
  2. The Broker Level Margin Requirement and whether there is a shortfall
  3. The breakup of how the margin is calculated
  4. Valuation of securities on exchange (VAR) and PLPL valuations (VAR+)

This report reaches clients on the same evening as the trade day after the exchanges have sent in their calculations of margin to be levied and clients are expected to immediately ensure that they do not have any shortages.

These values may be completely different from the values you get for trading on ODIN/ODIN Diet etc for a wide variety of reasons

For more on these differences between margins and limits, please visit https://www.plindia.com/faq/2021/06/15/limits-vs-margins/

It is therefore ideal that clients study the DMR on end of day basis and ensure they have understood whether there is any exchange shortfall that needs to be paid.

HOW STOCK VALUATION MATTERS

The client in this case (Image 1) has securities (post VAR) for Rs 29.44 lakh but post PLPL VAR the value drops to Rs 27.93 lakh (Image 2). To that extent , the client may be charged interest on this shortfall even if there is no exchange shortfall as PLPL has funded this difference between Rs 29.44 lakh and Rs 27.93 lakh.

IMAGE 1: EXCHANGE LEVEL CALCULATION OF MARGINS AVAILABLE AND MARGINS UTILISED

IMAGE 2: BROKER LEVEL CALCULATION OF MARGINS AVAILABLE AND MARGINS UTILISED

(As a broker, we get levied additional margins by our professional clearing member which are passed on to clients. This means the value you think you have (Gross), the value that gets reported to exchanges (VAR) and the value that you get to utilise for limits (VAR+) are all going to be different.)

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