I have pledged one lot of ITC with zerodha. I sold a CE which i have to oblige at the end of expiry. System will automatically unpledge my shares and the shares will be trasnferred out from my account, if the option expires in the money. or I have to do anything for that.
Your pledged shares will not be unpledged automatically to meet your physical settlement obligation. You will have to unpledge the shares before expiry day so it doesn’t result in Short Delivery.
If the expiry is on 26.11.2020, then i have to unpledge request to put on 25.11.2020, so the same will come into my account. And then settlement will happen?
- if the same is correct, please let me know, i have to maintain the full margin amount on 25.11.2020? or the margin amount that is getting from pledged amount will be sufficient.? no need to infuse new capital into the account?
Yes, if you place pledge request before 2 PM on 25th, shares will be available on next day. If you place after 2 PM then the request will be processed the next and and shares will be available day after that.
If you are unpledging shares then, there will be no collateral margin, right? In that case you will have to infuse funds to maintain your position.