Pledge related query

[Aditya_Gupta]

I have some queries on pledging of scrips. Though there are many topics there, but I coulnd’t find my solution.

If I purchase Liquid Bees for Rs. 5 Lakhs, then margin I will be getting is Rs. 4.5 Lakhs. So, these 4.5 I can use freely to do normal trading or are there any restrictions?

Secondly, the Shares of Liquid Bees will show in my CDSL Holdings or they will remain at Zerodha. (Can it be sold anytime by Zerodha without taking my consent?)

Thanks

[ShubhS9]

@Aditya_Gupta

If I purchase Liquid Bees for Rs. 5 Lakhs, then margin I will be getting is Rs. 4.5 Lakhs. So, these 4.5 I can use freely to do normal trading or are there any restrictions?

The collateral margin can only be used for intraday equity (using MIS), trading futures and shorting options. For buying options and equity delivery trades you will need cash balance in your account. More on pledging here.

@Aditya_Gupta

Secondly, the Shares of Liquid Bees will show in my CDSL Holdings or they will remain at Zerodha. (Can it be sold anytime by Zerodha without taking my consent?)

The shares stay in your Demat account only, with pledge marked against them. You will have to unpledge the shares before selling them. More here.