'Monitor leveraged F&O positions': What HDFC Securities told clients ahead of June 4 outcome

Ahead of the Lok Sabha elections 2024 outcome on June 4, HDFC Securities sent communication mails to its clients to draw investor attention over the perceived volatility that could arise due to general elections.

HDFC Securities asked its clients to monitor leveraged positions in equity, equity derivatives segment (F&O segment) and margin trading facility (MTF).  It asked its clients to ensure that surplus funds are maintained in linked accounts or funds are transferred to trading account or additional shares placed on 'margin pledge' to cover any adverse movements in the market.

The domestic brokerage said: "Cover Product for equity segment and derivatives segment will not be available on 04th June 2024."

Besides, it suggested that intraday products would attract a minimum margin of 40 per cent for June 4, 2024.

"We would like to draw your attention that the Lok Sabha Election results will be declared on 04th June 2024 (Tuesday). It is expected that markets may be volatile depending on the outcome of the final results," it noted. 

The ongoing general elections will conclude on June 1. On Wednesday, the BSE Sensex was trading at 74,694.02, down 476.43 points or 0.63 per cent.