What's more, no additional administrative or processing fee other than out-of-pocket expenses is levied against the investor for the application of a margin account. Margin Calls are issued once the total collateral in the Margin Account falls below a minimum percentage of the total amount financed. how to calculate Margin Ratio is described in the next section.
No new trades except for the liquidation of the existing positions will be allowed for the Margin Account once a margin call is made.Almost all securities quoted on the Singapore Exchange, including foreign currency denominated shares, and warrants of more than 12 months to expiration date, are marginable.Besides local counters, we also accept selected securities listed on the main board of other recognized exchanges with shareholders funds of at least S0 million. reserves the right to vary the lending value for, or impose a haircut or price cap, on any securities.As an example, suppose a partnership has two partners, partner A and partner B who share net income and net losses equally (income ratio 1:1), and have capital balances of 50,000 and 60,000 respectively.The partnership has cash of 20,000, non cash assets of 140,000, liabilities of 50,000.
The partnership is liquidated and non cash assets are sold for 100,000.The non cash assets of 140,000 are sold for 100,000 making a loss on sale of 40,000.After the sale of the non cash assets, the cash available to the partnership is the opening balance of 20,000 plus the cash from the disposal of the non cash assets of 100,000 which equals a total of 120,000.This cash is used to settle the liabilities of 50,000 leaving remaining cash of 120,000 – 50,000 = 70,000 to be distributed.Margin Financing Facility is a credit line granted to clients by Kim Eng Securities Pte. You may obtain financing of up to the maximum of 3.5 times the amount of collateral pledged. It is secured by a pledge of cash and/or marginable shares as collateral and is extended to both individual and corporate investors.