Dear Clients.

Lot of clients see "Adhoc Margin" blocked from your Net Available Margin today and hence are not able to trade. I would like to explain this in detail. Read our forum announcement regarding the circular on "Collection of upfront margin".

From today September 1st upfront margin and Pledge for margin process is implemented. As today is the first day there are practical issues which we faced and hence we had to block margin.

1. Credit of shares sold can only be given if we as a broker are able to do "Early pay-in" on the same day of trading. Time limit for Early pay-in is 9 p.m. Yesterday the process got delayed as payout files from exchange were delayed and  we could not do Early pay-in. Hence, today we could not provide the credit of shares sold yesterday to our clients. I am confident that from tomorrow onwards this process will be streamlined.

2. Clients having derivative position placed pledge request yesterday. As the execution date of the pledge is 1st September, the pledge will be executed today and will be reflecting in their DP account under "DP Pledge" bifurcation tomorrow. It will also be calculated in Net available margin properly. But for today value of shares used as collateral cannot be considered for giving additional margin and hence is blocked.

3. Till yesterday POA clients were enjoying benefit of margin against shares in their DP account. That is removed from today as it is not allowed under new margin rules. Ideally the amount should be reduced from your holding value. But the same is blocked through "Adhoc Margin". The same will be properly reduced from holding from tomorrow. 

4. Intraday profit for trades executed yesterday is also blocked today from Net Available margin. 

All the systems and processes are being streamlined both from depositories and our end today. From tomorrow clients will be able to see proper Net available margin. Having said that it is important for clients to go through our circulars "Collection of upfront margin" circular and "New Process of pledge" in detail. Sometimes it is lack of understanding which creates confusion as the process has gone through a major change effective 1st September. To get a smooth trading experience I recommend clients to pledge all shares lying in their DP account today. All shares pledged today will be available as margin on next trading day. 

Lastly, please upgrade your mobile to latest version. You will be able to see proper holding bifurcation and also able to place pledge request from App.