Pledged Stock Moving Out Of Pledge List

@siva @ShubhS9

What happens when a pledged stock in your holdings moves out from your pledge list that you maintain here.

e.g. take SUVENPHAR - You can see that it is pledged but I am unable to pledge additional quantity I bought recently. This is when I noticed that it is no longer in your pledge list.

Screenshot 2021-04-27 at 11.56.18 AM

So the question is does the collateral margin decrease when stocks move out of you pledge list? Or will the collateral margin provided honoured from the point in time when it was pledged? Or this is just a mistake and it is temporarily not visible in the pledge list and will be fixed soon?

Please enlighten …

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As per this support page -

Note: In cases where a stock you have pledged is moved under ASM, you will no longer be provided collateral margins for that stock, because, as per ASM 100% margin should be levied. The collateral value (shown on the trading terminals) will reduce by the value of collateral received against that stock.

That particular stock (SUVENPHAR) was added to ASM on 26th April 2021.

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Thanks @Prayag. That surely explains the anomaly.

I think this off-market action - “stock moving to ASM list” qualifies for a trigger email that informs clients who are holding the same stock - collateralised. For this can dearly impact their margins the next day. A nudge email maybe … isn’t it?

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Yupe, in our list of things to alert clients for this.

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Yes Bank stock bough few days back are not available to pledge in Zerodha, What is the reason ?

You can only pledge those shares which are listed here.

Yesbank isn’t on our pledge list since most of them usually tend to be under lock-in period.

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Hi,
My question is why it is not available in this list.
This is approved security from NSE as per my knowledge still Zeordha not allowing us to pledge ?

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Isn’t it obvious? If you are in the business of giving loan/margin against collateral, you would like to have something in return, whose value when goes below a set mark, can be easily liquidated and ensure you don’t bear further loss. YESBANK being in lock-in cannot be liquidated and hence probably not in the pledge list.

However, it is a whole new question if a brokerage house is obligated to extend the collateral margin for the approved list set by NSE. @Shruthi - Are you?

The shares available for pledging are as per the list of securities approved by the clearing corporation and at Zerodha’s discretion based on the risk associated with stocks. As of now, you will be able to pledge only those stock which is available in the list.

I am with you @Shruthi on this. The shares available for pledging are based on the list of approved securities by the clearing corporation. It is the discretion of the broker that depends on the risk associated with the stocks.