If I have pledged LIQUIDBEES and I use the margin for overnight Index Futures trades, how will my account be settled? Will my holdings get unpledged during the quarterly settlement process if I do not have any open position on that day?
There are some discussions available on this subject but I’m not sure if they still apply after all the changes that have been brought. I found a reply from March 2021 but I’m not sure if it still applies: Regarding quarterly settlement - #17 by ShubhS9
This still applies, pledged securities now say in users demat account itself, only pledge is marked against them. So whenever there is quarterly settlement, the pledged securities won’t be unpledged.
Thanks for the quick response. So does it mean that there is not effect of quarterly settlement on my account?
Only the cash will go back to bank, but the cash component margin will remain unchanged and usable the next day without any extra step involved?
Right.
Yes, cash balance in your account will be settled and credit back to your back account when quarterly settlement happens. The collateral margin (including cash collateral) will remain as is.
Thank you