How does pledging of shares work?

#1

@siva @nithin
If i have shares worth of @ Rs.5,00,000/- in my demat account and I pledge it to get margins for F&O how much margins will I get? Will I get margins for Futures and selling Options as well?
Please explain it with an example.
Thank you.

#2

It depends on the stocks which you are pledging, each stock could have a different haircut. Check this list.

Check this on how to pledge

https://support.zerodha.com/category/q-backoffice/portfolio/articles/how-do-i-pledge-my-shares-to-get-collateral-margin

and this for more on pledging

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#3

Do not have shares like MRF ,SHREE CEMENT ,3M INDIA in this list !

#4

Thank you sir for your quick reply.
Very useful information.
Thank you very much.

#5

@nithin sir,
In above article it’s written that pledged shares will be debited from the demat account. So I just want to know if debited from demat account where does it go? who provides margins against these pledged stocks? How do they get benefit from these shares?
Just curious.
Thank you.

#6

We pledge it with NSCCL (NSE clearing corporation). They use this security as collateral. They don’t get any benefit as such directly. But this adds F&O trading volumes to NSE, so indirectly they benefit.

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#7

@nithin sir i was long asking about pledged shares and margin positions in equity like Icicidirect 180 days margin scheme. Daily nominal interest on SAM ( sec as margin)

Will this come in zerodha?

#8

In our list of things to do.

#9

@siva
Sir how much more patience we need to have until we can start pledging at least liquid funds?

#10

This should happen soon as we also want to offer this on priority.

#11

@siva If I’m not wrong Zerodha doesn’t provide leverage for delivery/carry over positions. Will this be available in the near term ?

#12

Margin funding is in our list of things to do.

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