---
title: "When I pledge shares and receive collateral margin, my funds statement shows a debit balance. Will I be charged delayed payment charges on this debit balance?"
description: "When I pledge shares and receive collateral margin, my funds statement shows a debit balance. Will I be charged delayed payment charges on this debit balan"
category: console
subcategory: funds-statement
slug: when-i-pledge-shares-and-receive-collateral-margin-my-funds-statement-shows-a-de
canonical: https://support.arrow.trade/console/funds-statement/when-i-pledge-shares-and-receive-collateral-margin-my-funds-statement-shows-a-de/
---

# When I pledge shares and receive collateral margin, my funds statement shows a debit balance. Will I be charged delayed payment charges on this debit balance?

> When I pledge shares and receive collateral margin, my funds statement shows a debit balance. Will I be charged delayed payment charges on this debit balan

## Short answer

No, you will not be charged delayed payment charges on the debit balance that appears when you use collateral margin from pledged shares.

Your funds statement does not display the collateral margin you use for taking positions because iRage does not add or remove these funds from your account. Since your funds statement excludes collateral margin, you will see instances where your funds statement displays a negative balance, but you will not be charged delayed payment charges for this negative balance.

## Example scenario

You need a margin of ₹1,50,000 to buy Nifty futures.

Your available funds:

Opening balance on Arrow: ₹70,000

Collateral from pledging liquid funds: ₹45,000

Collateral from pledging stocks: ₹60,000

## Regulatory requirements

Regulations require that 50% of the margins blocked for F&O positions must come in cash or cash equivalent. You can use other non-cash equivalent collateral margins for the remaining 50% of the margin requirement. Margins you receive by pledging liquid funds are considered cash equivalents.

## Fund utilisation breakdown

## Your withdrawable balance calculation

You can calculate your withdrawable balance as: Opening balance - utilised amount = ₹70,000 - ₹45,000 = ₹25,000

## Funds statement display

Your funds statement only reflects the cash movement, not the collateral usage. So it will show:

Margin required – Cash available = ₹1,50,000 – ₹70,000 = ₹(80,000)

This ₹(80,000) negative balance simply reflects the part of your margin met via pledged collateral, not an actual debit due to borrowing.

Hence, you will not be charged delayed payment charges (DPC) on this debit balance.

## Related

- Browse more in [funds statement](/console/funds-statement/)
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Source: https://support.arrow.trade/console/funds-statement/when-i-pledge-shares-and-receive-collateral-margin-my-funds-statement-shows-a-de/
Publisher: Arrow / iRage Broking Services LLP