You may want extra margin to trade in the Market. Pledging can help you get this extra margin, especially if the cash margin is limited. In such cases, you can pledge your stocks and avail extra margin after a haircut.
For instance, if a stock is trading at 100 rupees, and if the stock has a haircut of 15%, you will get a ₹85 margin. Since the stock prices keep changing during the Market hours, the collateral margin is adjusted accordingly
Collateral margin can only be allowed for trading in Future and Options writing. You are also supposed to maintain a 50% amount in cash and a 50% amount in collateral margin for overnight F&O positions.
Margin Pledge facility is only allowed for specific stocks. While we keep updating the list regularly, you can review the list on our margin pledge module on the ‘My Profile’ page. You will still receive benefits of corporate actions such as bonus, dividend, splits and others.
The cost of pledging is 20 Rupee + GST per scrip. For example, if you are pledging 100 shares of Reliance and 200 shares of TCS, the total cost will be (20 x 2 = 40) + GST charges. This amount will be deducted from your ledger.
You cannot sell your pledged shares without unpledging and unpledging cost will be applicable. However, if you are placing a sell order and have free quantity (shares not pledged) and collateral quantity, your free quantity will be utilized first.
Currently, once you place a pledge request, you can’t modify or cancel the request.