What is CUSPA? (Client unpaid securities Pledge account )
- If you purchase shares and fail to make the full payment, the shares will be transferred to CUSPA
- Similarly, if you buy shares under MTF and do not confirm the OTP, the shares will be blocked/pledged for the remaining amount on T+1 day.
Client A bought 100 qty @ 1000 (100,000) of security under MTF and did not confirm the OTP as per the process. User has a cash balance of ₹60,000 in the account. This will create a net debit of ₹40,000 in his account. During payout we will hold shares worth up to (40,000*150%) of the debit value from the account
What is the difference between Pledge and Auto Pledge?
- In Margin pledge, users can pledge their own shares to avail the margin for F&O trading
- In auto pledge, the shares are pledged by Upstox under CUSPA for unpaid amount
- Shares are auto pledged under CUSPA for 8 days. Pledge is released only after the settlement period. During this period the shares are blocked.
- Users have to pay for the amount within T+5 days to avoid auto selling of the shares.
- Shares will be auto released only after T+1+7 days (8 days)
Auto-pledge charges are ₹50/- + GST
Auto-unpledge charges are ₹50/- + GST
*Notification is sent to the users informing about the auto pledging of the shares.