Since this article contains detailed information related to our Margin Pledge facility, we have divided it into subsections below. You can skip the sections that may be irrelevant and directly access the sections that you need help with by tapping on any of the links below.
TABLE OF CONTENTS
- What does pledging stocks mean?
- To learn how to pledge shares using our Margin Pledge facility on our old app.
- Click here for Updated Version
- To know how to check the updated margin after placing a Margin Pledge request.
What does pledging stocks mean?
You may want the extra margin to trade in the market. In such cases, you can pledge your stocks using our Margin Pledge facility and avail of extra margin after a haircut.
Let’s say using Margin Pledge you pledge a stock that is trading at ₹100, then with a haircut of 15%, you will get a ₹85 margin.
Keep in mind:
*Since stock prices keep changing during 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.
*Our Margin Pledge facility is only allowed on specific stocks. You can review the updated list of these stocks on our Margin Pledge module on the ‘My Profile’ page.
Disclaimer: To sell pledged shares, you need to first unpledge them. Click here to know the steps to unpledge shares.
*You will continue to receive corporate actions benefits such as bonus, dividend, splits, and more on your pledged stocks.
To learn how to pledge shares using our Margin Pledge facility on our old app.
1. Login to our mobile app using your User Id and Password
2. Click on Profile and select ‘My account
3. Select Actions tab
4. Click on Margin Pledge
6. From the selected options below, you can check transaction details, holding which are available to pledge out of Portfolio and scrips in which pledge is allowed
7. Select required scrips and quantity and click on 'Apply'
8. Confirm the pledge details and click on submit request
9. You will be redirected to the CDSL portal where you need to enter the OTP received on registered Mobile no and click on 'verify'
10. After verifying OTP click on the close tab
11. You can now check the Pledge status under Transaction history
Click here for Updated Version
If you’re using the updated version of the Upstox app, read this.
1. Log in to our mobile app
2 Click on the Account tab.
3. Under Account, select Actions
4. Click on Margin Pledge
5. Click on Learn more if you want to know the process for pledging
7. Select the shares and enter the required quantity you like to pledge
8. Click on apply
9. Confirm the quantity & scrip details and click on submit a request
10. You will be redirected to the CDSL portal immediately for entering OTP and then click on verify
11. After verifying OTP, click on the 'close the tab' option to return to the Mobile application page
In case your request is not successful then you will receive a notification mentioning that the pledge request is failed
12. You can check the status of the pledge request under the pledge request
To know how to check the updated margin after placing a Margin Pledge request.
Extra margin will be available only after the pledging process is completed.
1. After signing in, click on ‘Funds’
2. Under ‘collateral margin’ you can check the extra margin after pledging
1 After signing in, click on wallet under Account
2. Click on securities
3. You will get to see the updated margin
Note: In case you have placed the pledge request before 4:00 PM, it will be processed on the same day and the appropriate margin will be available on the next working day. If you have placed your pledge request after 4:00 PM, it will be processed on the next working day and the margin will be available on T+2 working day (within two working days).
Example: (Before 4 pm) If you place a pledge request before 4 pm on Monday(T day) then it will be processed on the same day and the margin will be made available on Tuesday(T+1)
Example: (After 4 PM) If you place a request After 4 PM on Monday(T day) then it will be processed next working day Tuesday (T+1) and margin will be available on Wednesday (T+2) "
Note: *The cost of pledging, as well as unpledging, is ₹20 + GST per scrip
To know in detail about Margin Pledge click here