What is NRML in reliance money (rsec.co.in)

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asked Aug 21, 2012 by rams (853 points)
Please explain me what is NRML in reliance-money and how I can utilize it. Is it safe to use NRML?

1 Answer

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answered Sep 14, 2012 by anonymous
NRML is a way you get exposure to more stocks than you the money you have in hand.

As an example, you have Rs. 1000/-  in your account and you want to buy 100 shares of Reliance Communications, each share at Rs. 50/-

If you buy this in delivery, you need 100x50 = Rs 5000/- in your DMAT account. But with NRML, you can buy all the 100 shares worth 5000/- on debt, with 1000/- as a security deposit. But, you need to repay the debt within 7 trading days.

If you are aware of day trading,

NRML = Day Trading but you do not have to close the position on the same day - you can close anytime wihtin 7 days.