Bad experience: Selling non-pledged quantities of a security, which also has pledged quantities

[MohammedFaisal]

Hi @blackswan and @cvs,

We are ready to allow the instant sale and unpledge of cash collateral securities such as LIQUIDCASE, which is being tested internally. We will be live for all clients in the next couple of weeks.
This got unnecessarily delayed, and we should have rolled this out sooner.

@blackswan

• A client has 200 shares of Reliance, out of which 120 are pledged for collateral margin.
• The client sells 80 shares of Reliance from the free holdings.
• The collateral margin will reduce to the extent of 80 shares, as the pledged quantities are considered first when the stocks are sold.
• Zerodha will debit 80 shares from the free holdings instead of the pledged holdings during the end-of-the-day process.
• The collateral margin in the client’s account is restored the next day, and the client won’t need to place the pledge request again.

For stocks in which you have both pledged and free quantity, ideally, we want to reduce the free quantity on sale first, followed by the pledged quantity. However, we cannot set this flow due to limitations on our OMS/RMS (powered by our vendor). Hoping that this won’t be a problem once we allow instant unpledge of cash collateral securities and you can keep all quantity pledged like you’ve mentioned.