Margin money

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pavankumar

pavankumar (Querist)

06 January 2009 sir pls explain me terms

1.morgin money

2.cash credit

3.packing credit

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

07 January 2009 1. The amount of equity contributed by a customer as a percentage of the current market value of the securities held in a margin account.

2. An account with a bank by which a person or house, having given security for repayment, draws at pleasure upon the bank to the extent of an amount agreed upon; - called also bank credit and cash account.

3. Packing credit is any loan or advance granted or any other credit provided by a bank to an exporter for financing the purchase, processing, manufacturing or packing of goods prior to shipment, on the basis of letter of credit opened in his favor or in favor of some other person, by an overseas buyer or a confirmed and irrevocable order for the export of goods from the producing country or any other evidence of an order for export from that country having been placed on the exporter or some other person, unless lodgment of export orders or letter of credit with the bank has been waived.

Please do mention in which aspect you need explanation. make your question clear. I have answered you as per my understanding.

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