In above link, it’s written that…"since the stocks are held in the broker’s collateral account, the broker is the recipient of all cash and non-cash corporate actions like dividends, bonus, rights, etc. While the broker is required to voluntarily transfer these benefits to the investor, a non-savvy investor may miss out on claiming such credits in the event that the broker doesn’t…
And in the below image, it’s written that dividend gets credited directly in bank account.
Does dividend get credited by “Zerodha” in my bank account OR does the dividend get credited by the “dividend declaring company” itself directly in my bank account as done in the case when the shares are not in a pledged sttate?
If Zerodha is receiving this dividend and then transferring it to my bank account, how long will the process take from the day company has actually credited dividend against my shareholding? And will you notify about such dividend credit transaction clearly to me?
And what happens when there is stock split done by a company or there is any other corporate action on my shares? Do you notify about increase in my share count of my pledged shares?
Under the new pledging system, shares stay in your Demat account only. So any corporate action will be directly passed on to you by the company RTA, just like it is when you’re normally holding shares in your Demat account.
If I have pledged stocks and did covered calls with the collateral margin. And option expires in the money (ITM) and I don’t square off the option. Will the stock automatically get unpledged and exercised?
So I have to unpledge it on Thursday or Wednesday?
But if I have taken 50% pledge collateral margin and 50% cash margin, then it means 100% cash margin I have to supply after unpledging for keeping options still expiry. This doesn’t sound good?
Other brokers though not transparent but still mentioned that you dont have to do anything. They will unpledge and settle against it (without me having to provide 100% cash margin)
Q1: For Example , If i had mutual fund investment of ( 5L ) and i get 450000 as collateral margin , and i need 700000 for option selling and distribute in such manner like (450000 as margin + 250000 as cash ) . Then on which amount 0.05% interest rate is applicable.
Q2: Can i use liquidbees full margin for option selling because liquidbees is cash component or i need to add extra 50% cash in my funds ?
Q3: Does 0.05% interest rate also applied on saturday sunday or on other non working days ?