I hold some securities/mf units in zerodha demat account. I need to pledge them to a different broker for margin benefit. Kindly explain the process and the fee.
If you wish to get margin benefit from another broker, you have to pledge your holdings with that broker. You can do it by transferring your stocks from Zerodha via online transfer or offline transfer using DIS slip. The process and charges might be different with the other broker. You need to check with them for more info.
I need to pledge them using offline pledge request by still holding shares in zerodha.
You need to first transfer the stocks to your other demat account where you want the margin benefits. To transfer the stocks you can use either online or offline method. You should first transfer the stocks and then approach your other broker to know more about pledging.
I just have a trading account with the counter broker. I know that there is pledge procedure to transfer using offline DIS. Guess zerodha does not allow where as i am able to do same with another broker. ( I hold accounts with multiple brokers). @siva Can you confirm this. usually shares can be pledged with an nbfc etc for loan purpose using this method.
You’ll have to submit a duly filled copy of a Margin pledge form (Annexure 8.4) and send it to us. You’ll have to indicate the counter broker details with whom you want to pledge these shares for margin. We will setup the transaction after which you’ll have to authorize it by entering an OTP.
Once shares are pledged to your other broker, you can contact them to avail margins. Margin pledge charges are Rs.14+GST.
Is there any reason you don’t want to avail margins with Zerodha and trade?
Margin pledge and regular pledge for loan are two different things. One gives you margin to trade the markets, the other is usually a loan of sorts where money is transferred to your Bank account. Either case, you have to fill the appropriate set of pledge forms and submit them to your DP.
But don’t you charge Rs.30+GST for pledging ?
That is applicable in case of pledge and re-pledge.
What we are discussing is one hop to a different broker and that broker will re-pledge it with his clearing member and he is going to charge me for that hop.
Thanks for the information. Also let me know if this can be done through easiest.
Our family holds around 7 accounts out of which 5 accounts are actively used.
I would love to trade with Zerodha, but …
50:50 collateral ( Since i have pledged considerable amount, it is making a difference)
NEST and now PI getting discontinued,
forced to consider other brokers, Might be back some other day…
Let me know if you have any premium plan to shift with the above mentioned facilities at an additional brokerage.
I have an idea about these, though not in-depth. Mentioned it as i was unable to put my point with Mr. Abhishek.
A connected question. will across pledging be allowed among different people. like i have two zerodha accounts (father’s and mine) can i get margin into single account ?
Well other brokers charge rs15…for pledge rs15 and unpledge rs15. …in that cdsl gets rs 5 for pledge and rs5 for unpledge…so zerodha charges rs30 in pledge and no charges in unpledge
No. Margin availed using margin pledge facility can only be used by the client pledging the shares.
I can’t do margin trades in zerodha as an investor is margin trading…when I see an quick news and know that shares will go up…I use other broker which is mapped to zerodha demat to buy the shares.
For example if we have good stocks in drugs Industry or good news came in market hours…I use Margin usual I have limited cash and buy it in Margin…hdfc and icici gives at less than 10% while angel broking at 20% and I will hold the stock’s for 1 month to 3 month…and then after that I may sell or I will pay full cash and transfer the margin shares to my demat account of zerodha.
As a positional investor…I use smallcase and sort and create my portfolio for fundamental,long term,short term etc etc. But sometimes I need margin funding.
It would be great of Margin trading for delivery is available
If you are looking forward to getting margin benefit from another broker, you need to pledge shares of mutual fund units with that broker. You can transfer online as well as offline from Zerodha to another broker where the charges tend to vary with the brokers. Get in touch with the customer service team of both Zerodha and the other broker to know the exact charges.