Can we pledge stock for short term investment?

Stocks
1

I have some doubts on stock pledge.

  • How much time period is for stock pledge?
  • Can we pledge our long term portfolio stocks for short term investments for duration 2- 6 months or more?
2

Hi @vinay_1096

Margins that you receive from pledging stocks can be used for Equity Intraday trading, futures & options writing (equity and currency F&O), subject to being adjusted for price variations at the end of each trading day.

You can read more on pledging below:

There is no time restriction as such. You can pledge the stock as long as it is available for pledging basically

3

It means Stock pledge is available for only intraday? Not for more than one day.

4

For intraday trades - you can use 100% of the margins received from pledging

For overnight F&O positions (futures or option selling positions) - 50% of margins should be cash or cash equivalent collateral while you can use the non cash collateral for other 50%

Would request you to go through the article that I shared in the above reply for more clarity and information on this topic