When trading under Margin Trade Funding (MTF) at Navia, the required margin and the leverage provided can vary depending on the category of the stock. Here's how you can calculate the leverage and required margin:

Categories and Leverage Calculation

• VaR (Value at Risk Margin): VaR can be checked on the NSE website by typing the stock name in the search bar.
• ELR (Extreme Loss Rate): ELR is an additional margin requirement to cover potential extreme market movements.

Leverage Calculation Example

Scenario:  Available Margin: ₹10,00,000

Current Market Price of Stock: ₹2,350

Calculation Example:

• Stock: Reliance (trading in the F&O segment)
• VaR: 9%
• ELR: 3.5%

MTF Margin Calculation: VaR + 3 x ELR = 9% + (3 x 3.5%) = 19.5%

Since 19.5% is less than 30%, Navia provides 3 times leverage for this stock.

Illustration:

• Available Margin: ₹10,00,000
• Total Value of Reliance Stock Purchasable in MTF: ₹30,00,000 (3 times available margin)
• Number of Shares: 1276 shares (₹30,00,000 / ₹2,350)

Additional Margin Consideration at Navia : At Navia, a slightly higher margin than SEBI's requirement is collected to accommodate potential Mark to Market (MTM) losses, which may arise due to market movements. This practice ensures that clients can avoid daily MTM calls, adhering to SEBI's regulations requiring daily MTM loss collection.