Per my understanding, stocks which have been pledged for fno margin will be unpledged as part of quarterly settlement in case the margins aren’t being fully utilized during atleast one day in the quarter. Is my understanding correct?
I generally have adequate cash margin in my account, but I have pledged some shares just in case I run out of cash margin and need some additional leverage on a particular day.
Is there a way to prevent/avoid this unpledge to ensure that we dont need to pledge the shares again post settlement and may be lose an opportunity during the process.
Also, can you please clarify what does it mean to “fully utilize” the collateral margin on atleast one day in the quarter with an example.