Is this live ? Because I could place order for pledged shares under product type Normal.
@ShubhS9
Yes, you can now sell pledged shares without unpledging them: Can pledged instruments be instantly sold without placing an unpledge request?
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Finally. 
Cash equivalents and MF cannot…
Can you clarify this line?
For eg. can pledged Nippon liquidbees be directly sold?
MF case one can understand, but what’s the status on specific liquid etfs.
We have been asking for this from so long and when you guys finally did it there was absolutely no announcement. Lol. I do not know what to say.
Since when is this live ?
This was taken live over the weekend. We’ll be making an announcement in coming days.
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Okay. So I actually saw it on the first day.
If there are unpledged shares as well as pledged, which one will be sold first?
I had unpledged small quantity on Friday and when I was trying to sell that today, I got a nudge saying my pledged quantity will be adjusted at the end of the day. Even in kite, the pledged quantity reduced after my order was executed.
I know I can wait for the answer tomorrow, but posted in anyways so that other also benefit out of this.
Cash equivalents and MF cannot…
Can you clarify this line?
For eg. can pledged Nippon liquidbees be directly sold?
MF case one can understand, but what’s the status on specific liquid etfs.
Please confirm this. This makes a huge difference.
I keep around 20 percent in cash to meet M2M losses. I can buy bees and pledge them if I know I can sell directly.
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We have roll out in a phased manner so there was no announcement made yet. Will announce it soon.
Once you unpledged from Console, the shares will be part of T2 Holdings and In case of you having both T2 and P (Pledged) in same scrip, upon selling P qty will get reduced first followed by T2 on Kite. Whereas at EOD process, system checks for T2 first and then pledge if sold is > T2 towards the sell obligation.
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Hi @Chirag1
Currently, cash equivalent are not allowed to instantly sell since it will be treated as cash as well as collateral for margin reporting and also, haircut is lesser comparatively with no/minimal overnight or intraday volatility, no result or corporate action/events. Also, cash equivalent being part of collateral is more benefit than getting sale credit at 80%.
For ex: Say I pledged Liquidbees with 8% haircut worth 1L and got 92K collateral margin. Once sold, I get 80% sell credit i.e., 80K when compare to collateral margin.
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@Ananth Thanks
what you have written is one side of the trade-off.
The other side is, when cash obligation is required, no matter how much margin one has, it can’t be used.
I would rather have 80% cash towards MTM obligation than 92% margin. This way I would pledge more LB and sell in mkt hours same day instead of having to bring in additional cash via Bank.
From margin reporting perspective, I’m not very sure whether its possible/allowed or its a technical hurdle in your system.
To add on to this. If I have a choice between liquid funds or liquidbees I would choose Liquid funds because of slightly higher return.
Only reason I am not doing that is because I need to cover M2M losses. Right now am just keeping additional cash. If liquidbees cannot be instantly unpledged and sold, then it’s going to make no much difference. I would rather just keep the balance in SB account.
How we manage our margin at the end of the day should be our concern. If am not wrong other brokers are already allowing this. If we consider the cost of these idle funds I am losing almost 4 to 5 lakhs annually because of this.
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Hi @ShubhS9
If holding is unpledge still we can put gtt order?
If yes, than its everything ( unpledge, sell securities) will shorted out from your mechanism and same day i can get access my cash is that right?
The pledged shares are now shown in Kite holdings. So you can place a GTT order for these. Once triggered and the other is executed, you will get 80% of the sale proceeds while remaining 20% will be available the next day. Also, you don’t have to seperately place unpledge request.
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After placing unpledge request , that stock can be sold in auction same day or have to wait for next day ? ( used only 50% of collateral margin , having sufficient unused margin )
Currently, pledge holdings cannot be sold in Auction market since the settlement numbers are different and to avoid short delivery risk. Whereas if you had unpledged from Console and received shares in your free holdings, you can participate in Auction and place a sell.
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if i place unpledge request in console today , it will be free holding in tomorrow or today itself ?
It will be available from Tomorrow if you had given the request within the cut-off time (3:30PM) and if it processed successfully. You can read more about unpledge process and the timings here: How to unpledge shares?
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