Hi everyone
I’ve a short call option which is likely to be assigned. The trade was part of covered call. Now, shares against which I’ve sold my covered call are pledged for margin requirements.
1)When should I unpledge those shares for honouring assigned short call? T-1 or T-2 to expiry?
2) suppose I don’t unpledge is there a mechanism that they will be unpledged automatically? Or I have to face short-delivery consequences?
I’ve account with zerodha
Hi, you will have to unpledge the shares, you can place unpledge request on Wednesday before 2 PM and shares will be available for trading the next day.
The shares won’t be unpledged automatically to fulfill your physical settlement obligation, not having shares to deliver will result in Short Delivery.
Thanks a lot!
When do we get the unpledged shares available for trading on the same day with Zerodha?
Right now, we want to place the request to unpledge the shares and the unpledged shares will be available next day.
Do you have any timeline for the same day operation?
Appreciate your timely response.
Am waiting for the same feature eagerly. I guess its dependent on CDSL building some APIs.
In Ventura, I sold the ‘pledged’ shares without unpledging step. It went through fine and got sold the same day. I received the fund T+2. I think internally they are taking care of unpledging and selling. All within the same day. Is this specific to NSDL?. How do they do that?. Is CDSL lagging on this front?
Hi but under new pledge rules, stock technically never leaves demat right? so why is there a necessity to unpledge before expiry? The moment we unpledge, there is a possibility that there will a huge surge in margin requirement correct?