Margin Pledge
Do we need OTP Authentication for Unpledge?
No, we do not need to authenticate for unpledge. The customer just needs to place a request and we will be able to unplegde the same.
What are the Charges for Margin Pledge?
Charges are Rs. 20 + GST per ISIN for Margin pledge & Invocation/unpledge.
What is the validity of OTP?
OTP shared by CDSL will be valid for 10 mins.
What if I dont get OTP from CDSL?
That is usually unlikely. If you don't get OTP from CDSL for pledge verification, you will have to retry to get the OTP for pledge verification.
Can I use the full margin of cash components?
The collateral margin received by pledging cash component securities can be used fully towards any margin requirement for your open positions. There is no requirement to maintain cash separately if the margin requirement is covered by collateral from ...
What are non-cash components?
Non-cash component is the margin which is provided by pledging securities as collateral. All the Equity Stocks ( eg: Reliance, TCS) and Stock/commodity based ETF (eg: NIFTYBEES, GOLDBEES).
What are cash components?
Cash component is the margin which is considered as a cash or cash equivalent. Examples: Cash transferred from your Bank LIQUIDBEES ( NIP IND ETF LIQUID BEES ) ICICILIQ ( ICICIPRAMC - ICICILIQ ) LICNETFGSC ( LICNAMC - LICNMFET ) LIQUIDETF (DSPAMC - ...
Is the same rule applicable for intraday F&O also or only positional will require 50% cash component?
This rule is applicable on the EOD margin derivation (MG 13). No impact if you do intraday trading in F&O.
How will the same reflect in the ledger?
Every EOD after computation of deficiency in cash Margin (50%), a Margin bill will be raised towards it and an attempt to pay in the amount will be done. A receipt will be booked to the extent of the amount received. The Margin Bill raise on T day ...
Is there any flexibility in the cash component requirement?
While the minimum requirement is 50% of the margin, you can choose to maintain a higher percentage of cash component to avoid potential deficiencies and interest charges. Illustrative table appended below considering various scenarios: Scenario ...
How can I avoid paying interest on cash component deficiency?
To avoid interest charges, ensure that you maintain the required 50% of the margin as cash component. You can also consider maintaining a higher percentage of cash component to provide a buffer against any potential deficiencies.
Can I still use non-cash components for margin?
Yes, you can still use non-cash collateral such as stocks and securities for margin. However, a minimum of 50% of the margin must be maintained in the form of cash component.
How is the interest calculated?
Interest will be levied on the deficiency of cash components at the rate of 1% per month on shortfall amount. The interest will be calculated on a daily basis.
What happens if I don't maintain the required cash component?
In case of deficiency in the cash components, interest will be levied at the rate of 1% per month for shortfall amount. It's important to maintain the required cash components to avoid incurring these charges.
Do I need to maintain 50% ratio in the form of cash or cash equivalent collateral?
Yes. You are required to maintain a minimum of 50% of the margin in the form of cash component, along with other non-cash component collateral such as stocks, securities, etc.
How do I sell shares which are under pledge?
Go to portfolio and unpledge the stock. Next day you can sell the stock from your holdings.
Where can I view my Limits given against pledge?
Under the Fund Details section, you can view the Pledge Benefit. This is the Collateral value received from margin pledge.
Will HDFC SKY sell these securities at the time of shortfall?
Yes, HDFC SKY may sell these securities to cover any losses or shortfall.
Can the limits against the securities deposited change every day?
Yes, the collateral limits will change basis on closing price of the specified scrip
How is the eligible trading limit calculated against collateral deposited under Margin Pledge?
For the purpose of Limit calculation, securities are valued at the previous day’s closing price after applying the applicable haircut. The haircut % for all eligible stocks can be checked on here For Example, if 100 shares of ABC are provided as ...
What happens to my Stocks Corporate Actions if I have pledged the shares?
The securities arising out of corporate actions like Dividend, Bonus, split, mergers, consolidation, etc. will be credited to your Demat account. You are eligible to receive the benefits of all Corporate Actions.
Will the shares move out of my Demat account after I pledge my securities?
No, Stocks will remain in your DEMAT account after pledging.
Are we allowed to pledge Mutual Funds?
No, we do not allow Pledging of Mutual Funds.
Are we allowed to pledge ETF?
Yes, we do allow Pledging of ETFs, the list is updated here under “Shares as a Collateral Hold”
How long does it take to get margins after I have pledged my shares?
The limits will increase in couple of minutes on marking a pledge on the shares in the Demat account.
Can I get pledge limit on all shares?
No, only selected stocks are allowed to be used as collateral. HDFC SKY will decide from time to time the basket of stocks that will be allowed as collateral. The list of stocks allowed as pledge can be viewed on following link under “Shares as a ...
How much limits do I get against shares deposited?
The haircut % is different for different scrips, & limits decided by HDFC SKY & are subject to change from time to time. Refer the eligible securities and haircut value here under “Shares as a Collateral Hold”
In what all segments the benefit of Margin Pledge cannot be used?
The benefit of Collateral Facility is not available in Equity Delivery, Equity Intraday and Mutual Funds.
Which are the segments in which the Margin Pledge Collateral Funds can be used?
You can use Margin Pledge Collateral Funds in the following segments. a) For taking Positions in Futures. b) For taking BUY and SELL positions in Options. c) Buy Stocks Pay Later (MTF)
How do I unpledge my stocks?
You can initiate unpledge of securities from HDFC SKY web as well as mobile platforms. For unpledge no need of OTP verification. HDFC SKY App/Web > Go to the Portfolio Tab > Select Security which you want to Unpledge from holdings > You will see ...
What is unpledge of Stocks?
Unpledge of Stocks is releasing the Pledge on your Holdings that are already pledged with the Broker. Stocks remain in DEMAT, hence no movement of stocks takes place.
How can I sell my Pledged Stocks?
You need to unpledge the stock first to sell the stock. Go to portfolio and unpledge the stock. Next trading day you can sell the stock from your holdings.
How to pledge my stocks?
Go to HDFC SKY mobile App or Web Trader > visit Portfolio section > Tap on the stocks which are in your Holdings > click on “E-Pledge Holding” > This will redirect you to CDSL page for “Margin Pledge Transaction Verification” using OTP sent on mobile ...
What are the benefits of Margin Pledge?
Following are the major benefits of Margin Pledge: a) Enhanced buying power b) Higher leverage c) Ability to Sell pledged stocks anytime.
What is Margin Pledge?
Margin Pledge is a process that enables customers to leverage margin benefits based on the securities held in their Demat Account. To access these margins, customers are required to pledge their securities with the broker. Importantly, the ownership ...