Stocks approved by Exchange / CC that become pledge-able. I suppose that is monthly? But pls. confirm.
Newly added SGBs - How many days after offer closure do they become pledge-able and sheet is updated? Rough estimation is fine.
Newly added NFOs - How many days after offer closure do they become pledge-able and sheet is updated? Rough estimation is fine.
Stocks moving to broker limit reached? Within how many days the sheet is updated? Critical!!
The hair-cut percentage - When does it change in the sheet?
ASM additions / subtractions - When do they get updated in the sheet? What is the lag? Are they updated at all? (No column for this reason!)
If margin is getting reduced (due to ASM move or due to Hair cut change) is there any way to find it which stock is responsible without doing a full fledged matching exercise? I recently took a stock SPORTKING on 30-JUN-2023 and now I see it in Broker Limit Reached: Yes - category when it is time to pledge it.
My point - This sheet is becoming too critical but I don’t have enough understanding about the individual moving components therein and their update frequency and timing. Can someone please deep-dive and answer this - will help everybody. Also, if possible can this sheet be a webpage - that can easily be scrapped, referenced, etc. Also, it will be great if we can have a Nudge - with broker limits reached and an email when collateral margin changes - due to major hair-cut changes or due to ASM moves.
2 & 3. It depends on Clearing Corporation, it may take between 1-2 months.
It gets updated daily and on first come first serves basis. For ex: Member limit is 100 and accepted/authorized pledge request at depository end will be considered first.
Currently, we do notify through Email if haircut change to 100%. Its operationally difficult to notify every tiny changes (increase) in haircut., but will try to find a way out.
Excellent. Thank you @Ananth for answering all my queries. It’s nice to know that most of the things are getting updated daily. Just a small further clarification on 4th point -
Is the other way round also true? Are the stocks coming out of “Broker Limit Reached” which are henceforth marked “No” - updated on a daily basis or this is done on 1st of every month? Probably implicit but I have seen it getting updated “Yes” to “No” around first always. May be circumstantial but can you please confirm.
Also, your thoughts on nudge for someone who is buying a stock that cannot be pledged for XYZ reason?
There are two things, one is daily basis where you might witness 2-3 scrips changed to Yes to No or No to Yes whereas other thing is monthly basis where you can see 100+ scrips changed the status due to reduction in member level limit. Let me find the criteria of broker limit and update here.
We do have it on Console when someone give pledge request and we do have support article briefing various reasons why pledge is not allowed.
Hmm. Well, the way I see it - in console while making pledge request - it is already too late. What if I only wish to buy a stock that I can pledge and on top of it if I can’t pledge it, I would like to exit it. The sheet is already having daily updates. If the same can be available in KITE with the BUY order window via a Nudge especially for “broker limit reached” it will be great. I think for ASM you are already doing it. I am needlessly incurring this cost of entering and exiting the trade (STT) because 1 day later I find that the trade doesn’t meet my purpose (the ability to pledge). The instances of this can be reduced if KITE has updated view of this sheet. Not to mention with the recent changes of BTST, it blocks the entire margin equivalent to cost of the trade - on the next day.
Note: I get it if this is a low priority issue because of a very specific use case. I am not sure though.
Showing nudge on Kite will look like spam because we don’t know the intention behind someone buying a particular stock and not everyone who buys wants to pledge.
Also, it may act opposite if someone didn’t buy seeing the Nudge and if broker limit comes down the next day, pledge is acceptance.
I wonder if there is any other way to solve this? I think “broker’s OI limit reached” for index options is also a similar issue that is at least known instantly in KITE. But I guess for anything like that to work - first buy button and pledge button actions need to be combined in KITE - sth like “Buy For Instant Pledge”. Though even as I type - I can see how far fetched a task it is. However, it is exactly the opposite of “Sell For Instant Unpledge” that already happens in KITE behind the scene and seamlessly these days.
Anyhow, thank you for the insights. I guess I have to deal with this for the time being.
This implies that the sheet is not getting updated daily at 10 PM. Can we please have a timestamp cell in the sheet which puts in the date and time when the sheet was last modified so that this is transparently known by people who are going to make critical long term decisions based on the data. And the timestamp should probably be section-wise.
Note: This is not an issue with the quantity. I tested with 1 share and it still did not allow me to pledge.
I can understand the first day when the limit is reached - it cannot be foreseen. But the sheet is updated 2 days after that. And this is leaving me with un-pledgeable security and reduced collateral margin - every now and then. There has to be a better solution around this. Though not sure - what it should be …
Note: I noticed that this one got updated somewhere in between 8:30 AM and 11:30 AM today. And certainly not before 10 PM yesterday.
Apologies, there was internal error at our end in updating the sheet since we were testing automating this updation part. It will get auto update from Monday. The Kite order window rejection is auto process which is synched with exchange file source.
It happened again today at 8:30 AM. Same stock - RHL … Unable to pledge inspite of the fact that it shows “Broker Limit Reached” = NO in “Approved list of Securities at Zerodha.” Screenshots below taken 1 min apart for reference -
There is still no way to figure out the timestamp when the sheet is getting updated.
Also, I have a suggestion - You must be aware of the limits. Instead of keeping the values as “Yes|No” under “Broker Limit Reached” column, why not add another datapoint like “Yes|No|Near”. The value should be marked “Near” when the limit is likely in the 2% range of being blocked or any suitable number you deem fit which can show to a potential user that he may or may not be able to pledge the stock. This will certainly alert the user whose intention is to buy the stock and pledge it as well.
Yes the breach quantity was very tiny but yeah as you mentioned will give a try to show near feild when its about to breach. We are working on seperate web page for this and just a UI part is pending, will enhance.
@Ananth Would you be able to help why Quant Momentum Fund mutual fund is still not in the approved list. NFO date was in Nov. So it’s more than three months which seems longer than the time given above. Thanks in advance
Hi @Ananth
I am unable to unpledge Marksans Pharma , its throwing hair cut unavailable or similar error.
I am not able to pledge this security either. could you please guide? I want to sell this before the current FY.
@TheGouda could you please check why i can not yet approve quant commodities mutual fund or quant consumption fund. They are more than 3 months old, sp they should be in the approved list right?
