Effective Deposits / Liquid Networth

Effective deposits

All collateral deposits made by CMs are segregated into cash component and non-cash component.

For Additional Base Capital, cash component means cash, bank guarantee, fixed deposit receipts, T-bills and dated government securities. Non-cash component shall mean all other forms of collateral deposits like deposit of approved demat securities.

At least 50% of the Effective Deposits should be in the form of cash.


Liquid Networth

Liquid Networth is computed by reducing the initial margin payable at any point in time from the effective deposits.

The Liquid Networth maintained by CMs at any point in time should not be less than Rs.50 lakhs (referred to as Minimum Liquid Net Worth).