@nithin Did you mean “From yesterday all customers can now sell Pledged holdings”?
@nithin @ShubhS9 And how can we sell the shares as the pledged shares don’t appear in the holdings tab on Kite.
Please advise.
Hey. You can check the number of pledged shares in your Kite holdings indicated by the symbol P.
To know more, see, What does the P symbol indicate on the Kite Holdings page?
thanks ! this is an awesome upgrade !
helps esp. when there are circuit breaker type rallies
So now if we pledge stock, sell covered call using margin received on the pledge, and let the position expire ITM , can the pledged stock be then left alone for delivery ? (without unpledging or us placing sell)
@ShubhS9
Yeah i know that but the pledged qty is not available in kite holdings tab then how would you sell them?
I guess its better to wait for instructions from Zerodha team as @nithin said
Will check and get back to you on this.
As @Aswath said, pledged shares now show under Kite holdings itself. These will show under the “P” symbol. You can check this support article for more information: What does the P symbol indicate on the Kite Holdings page?
If you’re not able to, please DM me your Client ID. Will check and get back to you on this.
Hi @VijayNair
Currently, we do consider pledge holdings towards the physical delivery obligation and send out notification to authorize (in case of Non-POA). This would continue the way it is now and you no need to sell or give unpledge request.
In case of Non-POA, due to T+1 settlement cycle, authorization timeframe reduced to one day from the earlier 2 days . Now, you need to authorize pledge debit before Friday or on the Expiry day itself.
3 Likes
I just sold my pledged shares from my holding. It is possible now.
2 Likes
@ShubhS9 @Aswath thank you both, I misunderstood earlier.
Waited for this feature a long time.
Cheers !
1 Like
What about mutual fund pledge ? is this also implemented?
1 Like
You will have to first unpledge mutual funds before selling them.
Have you thought about increasing technical equity? Debt is not always bad and if business use it wisely then it can lead to productive growth. As long as debt/equity ratio is healthy one shouldn’t be worried about taking on debt.
It looks like you guys have such low technical equity that any amount of technical debt is scary high for you. Focus on business and improve technical equity bro instead of giving one philosophical interview every three days.
You and Kunal Shah should both change your job description to twitter philosophers 
1 Like
@ShubhS9, I have equity shares of a company (equal to one lot) lying in my demat. these shares are pledged. I had sold a call which has turned ITM, so there will be physical settlement. My questions are:
- Am I supposed to unpledge the shares today so that it may be be debited tomorrow by zerodha or will it be automatically debited tomorrow while remaining pledged. If second case happens, am I supposed to authorize through CDSL TPIN tomorrow?
- What will be total charges in case of physical settlement?? In FAQ on zerodha, it says 0.25% of physical settled value will be charged. For netted off position, 0.10% of physical settled value will be charged. There will also be STT of 0.1%. What is this physical settled value ? Please explain through detailed illustration.
Pledged stocks are considered towards physical delivery obligation. If you’ve submitted POA, you don’t have to give unpledge request.
In case you’ve not submitted POA, you will have authorize pledge debit on expiry day. We’ll also send notification in this case.
For giving/taking delivery of shares, the brokerage is 0.25% and STT will be applicable at 0.1% on the physically settled value.
Physically settled value = Strike Price * Lot Size * Number of lots. You can learn more about physical settlement here: What is Zerodha's policy on the physical settlement of equity derivatives on expiry?
This brokerage will be charged only for Call option. So net charge will be 0.35%. Suppose I have sold one lot Reliance CE Strike Price 2350. So physical settled value will be 2350 * 250=587500. So
(1) brokerage 587500 * 0.25% = 1468.75
(2) STT 587500 * 0.10% = 587.50
Will there be any charges on sale of shares as well or only on call option ??
Moreover If I had bought reliance futures instead of in cash, that position will be considered net off (Brokerage of 0.1% is applicable). But as far as charges are concerned, I will be levied charges in following manner. Suppose Reliance expires at Rs. 2380 tomorrow
-
On Futures
Brokerage = 2380 * 250 * 0.10% = 595
STT = 2380 * 250 * 0.10% = 595 -
On Call option
Brokerage = 2350 * 250 * 0.10% = 587.50
STT = 2350 * 250 * 0.10% = 587.50
Am I Right in above calculations or I am missing something ???@ShubhS9
Unpledging and selling pledged stocks can be a bit complicated, so it’s important to understand the process before taking any action.
Yes, this is right.
No, even if you’re holding Long/Short futures position or Put option and have to give or take delivery, the brokerage of 0.25% will be applicable.
Your brokerage calculate is right. The STT bit for net-off positions, I’ll confirm with the team and get back to you.