Pledge related questions

Now that pledging is enabled online, i have the below questions:

  1. what happens to dividends of LIQUIDBEES that are declared while pledged.  These units are in decimal points.
  2. what happens when the value of pledged shares dip?  How often is the pledged value revised?
  3. how long can one have the shares pledged? can it run into years?
  4. what is the timeline for pledging to have the margin availabe & how long to have the shares back in demat after unpledging?
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1. The dividends get accumulated to your pledge holdings itself. Whenever you unpledge, it will come to your demat. The fractional units can't be sold on the exchange, there is a different buy back process for this. Check this link.

2. Pledge value is revised end of everyday. When it dips, automatically the margin in the trading account reduces. 

3. For as long as you want. 

4. Any pledge request before 4pm, you will get margin for next day trade. Any unpledge before 2pm, you will have stocks for next day trade. 

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Thank you. How is the mf.zerodha.com coming up?

Is it possible to pledge NCD’s that has been allotted to Zerodha Demat account and use it as collateral for F&O

Hello,
I have Gsecs in my Zerodha Demat account, Can i pledge these instrument to get my Margins for F&O trading ?

2 Likes

can i buy options intraday with pledged margin?(with products like CO/BO/MIS)

I pledged my shares of NSE, when I unpledged them I got them as BSE shares, why’s that? Also does this affect my options physical settlement in any way?

Read this.

It doesn’t.

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Hi, a pretty basic question on pledging. Lets say I have 1 lakh rs in a CPSE ETF and get 85,000 rs worth collateral after the haircut. Now can all of the 85,000 be used in overnight F&O positions only or will I be able to use only 42,500 worth it?

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CPSE ETF isn’t considered as cash equivalent. So if your overnight position needs 100k, 50k will be used from collateral from CPSE ETF while 50k should come from cash.

Hi Guys,

What will happen to our current open positions when new pledging system goes live?
Do we need to close our positions and unpledge the shares?
And again we need to follow the new pledging procedure to get the collateral margin?

@siva

Thanks

Thanks for the reply.

2 Likes

Dear Shubh, wanted to ask you another question on the same subject since you seem well versed with the nuances of it. With the same example mentioned above, will I then be able to use 85% of the capital pledged on intraday trades? Thank you once again.

Yes you can use for Intraday trades, there is no 50:50 Cash - Collateral requirement for Intraday but you will still need cash to buy Options.

1 Like

Thank you. No plan to trade options. I suck at it.

When do you plan to add more ETFs which can be pledged like ICICILOVOL, ICICIALPLV (ICIC Low Vol ETFs)? The 2nd one got listed in August itself. From NSE, there is very low haircut on these.

I had placed unpledge request on Console of my LIQUID FUND on 3/9/2020. Even after 2 days it was not unpledged. When it will gets unpledged? How much time required for unpledge that LIQUID FUND ?

What time required for redeem LIQUID FUND from coin to trading account?

Hi Shubhs,

Thanks for the clarity. If I invest 50% in non-cash component and 50% in cash component securities for collateral, will I be able to hold overnight option writing positions? or should I bring in 50% in cash only for holding overnight option writing positions. Pls. clarify.

1 Like

Yes, you can hold overnight F&O positions.