Question

    What is the minimum margin requirement for banks on

    equity shares / convertible debentures held in dematerialized form?
    A 25 percent Correct Answer Incorrect Answer
    B 50 percent Correct Answer Incorrect Answer
    C 40 percent Correct Answer Incorrect Answer
    D 75 percent Correct Answer Incorrect Answer
    E 80 percent Correct Answer Incorrect Answer

    Solution

    As per RBI Circulars & guidelines, banks should maintain a minimum margin of 50 percent of the market value of equity shares / convertible debentures held in physical form. In the case of shares / convertible debentures held in dematerialised form, a minimum margin of 25 percent should be maintained. These are minimum margin stipulations and banks may stipulate higher margins for shares whether held in physical form or dematerialised form. The margin requirements for advances against preference shares / non-convertible debentures and bonds may be determined by the banks themselves.

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