When any share in the Demat is held as collateral, the source of limit will increase upto the collateral valuation under “Collateral limit” in “Limit” page.

If customer  perform the Coll-Sell, then the sale proceed from Coll-Sell will be shown in “Equity receivables “ and   “Collateral limit” will reduce as per the collateral logic similar to Collateral release or withdrawal.

An example is given below to understand clearly the impact of Coll-Sell on customers limit.

Suppose a client has a Demat holding in a scrip ABC, 100 Qty @ Rs 900 per share and the collateral valuation % is 80.

The total value is Rs. 90,000 with 80% collateral valuation.The “Collateral Limit” given to the customer will be Rs. 72,000 in the Limit page.

If customer sells  60 shares at Rs. 910, then under Source of limit header, Rs. 54,600 will be shown under due to sale proceed of collateral held shares. At the same time “Collateral Limit” will be reduced from Rs. 72,000 to Rs. 28,800.