If I have both cash and pledge margin balances, how is quarterly settlement carried out?

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Quarterly settlement pay-outs are issued after adjusting available balances (cash and pledge margins) for any open positions. Margin requirements for open positions are adjusted against pledged holdings first, and then (if required) against cash balances. For example,  

Scenario 1: 

Particulars	Amount
Cash Balance	Rs. 1.00,000
Pledge Margins	Rs. 1,00,000
Margin Blocked/Retained	NIL
Quarterly Settlement	Rs. 1,00,000 is credited to the client's registered bank account and the pledge margin (Rs. 1,00,000) is retained.

Scenario 2: 

Particulars	Amount
Cash Balance	Rs. 1,00,000
Pledge Margins	Rs. 1,00,000
Margin Blocked/Retained	Rs. 1,50,000
Quarterly Settlement	Rs. 50,000 is credited to the client's registered bank account and the pledge margin (Rs. 1,00,000) is retained.

It is important to note that overnight F&O positions require a minimum of 50% of the margin to be maintained as cash. The remaining can be brought as cash or pledged margins (after the applicable haircut). If 50% of the margin is not maintained as cash, interest will be charged on the shortfall amount @ 0.05% per day. After the pay-out, please ensure that the required amount is maintained as cash in your trading account if you have open derivatives positions.