Most likely this week, the delay is due to CDSL.
Hi @siva,
How many days prior, Zerodha team sends communications to the member’s who has been pledged their shares to get collateral?
Do we get enough time to close our existing positions or bring extra cash margin before new pledge system goes live?
Thanks
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Have the same doubt, @siva.
Also, someone (not me) has posted in the comments that the shares were automatically unpledged. Is this how the system’s gonna be? Or we’ll be given time? I saw that in my account, the liquid funds were still pledged though…
Not yet started, will give enough time.
Yes, new system will start from this week will have time till month end to move to new system.
Since it’s looking increasingly likely that the new pledge system isn’t coming before next week, can the time be extended for this by two weeks (same amount it’s been delayed by), or even at least one week!?
Brokers themselves would probably need more time as well since not every investor would be knowing about the new system.
@Nithin, hope you’ll look into this.
@siva Siva please at least you can provide a list of approved securities , i will plan to invest those fund to pledge after wards , just send the approved securities by sebi , i need to know the haircut , its second week running
@TradeB2B - Please check the above list. I’m following it since a few months now. I don’t know if the new pledging rules are applicable to this list or not. But this list was present before the new rules were announced. I think the list will remain same and valid.
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We are hoping from early next week new pledging may go live.
With the new pledging rules coming into effect from 1st September, I understand that corporate actions would be much simpler, since the securities are not transferred to the broker’s collateral account. But I have a specific query as to dividends paid till then.
From FY 20-21, tax is to be deducted at source on dividends distributed by companies and AMCs, if the dividend payable to a person exceeds the threshold limit.
With regard to the recent change in the tax treatment for dividends, how does it affect people who had pledged certain shares for the purpose of margin ?
For example, for 100 distributed as dividends (before TDS), TDS shall be 10 (7.5 for FY 20-21) and the net amount distributed - 90 (92.5 for FY 20-21). In this case, will the broker credit 90 or 100 to the original holder (pledgor), since the credit of TDS shall be to the broker (in whose name the shares appear as at the record date) ?
Guys i know before zerodha will take more time yaar , motilal already allowed to new pledging system , only zerodha have depository problem , i dont know why
For USA investing was first comment by zerodha in 2017 , but all other broker come out of USA investing , still zerodha telling we need approval from RBI , why zerodha have any problem behind the seen , who knows.
otherwise why RBI is not giving approval for zerodha , only zerodha is backward to introduce the USA feature , so i opened account on TD AMERITRADE directly … waiting have a time , in zerodha its too much
In the above article it shown clearly about the broker interest clearly , brokers are delaying , SEBI will throw out these broker very soon
A source in NSDL also confirmed this: “The new facility is operational and more than 50 brokers are using it. In fact, we issued a circular on August 15 asking brokers not to wait for the last day to start using this facility. We have also done a conference call with around 100 brokers. But most brokers’ back end systems are not updated for this mechanism,” the person pointed out.
“We are ready with an extra feature of partial pledging of shares from today,” another NSDL official told Moneycontrol.
According to sources, the regulator is unlikely to extend the timeline this time. “SEBI may pull up brokers, clearing corporations and depositories if they are not ready with the system. The regulator is adopting many measures in favour of investors, but brokers and depositories are not coming up to its expectations," a broker said on condition of anonymity.
The article says CDSL is ready:
Interestingly, Central Depository Services Limited (CDSL) is already ready with the mechanism.
Zerodha, where is the hiccup?
Please provide an exact date (not by this week, early next week reply).
yes…Angel broking has already started the New Pledge System and charges are also only Rs 20 per Scrip…Zerodha seems to be delaying and laying blame on CDSL…Also…Angel Broking account are also in CDSL…
motilal , angel , hdfc sec already started new pledging mechanism , zerodha always like that taking more time then normal , better other brokerage firm , as a client we suffer and not able to get a needed feature also
still strategy builder option tab in kite siva told we will launch first in kite , other brokerage already implemented , still zerodha not yet , its really bad