Dear Customer,

I wish to draw your attention to a very important SEBI circular no. SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated 25th February 2020, which mandates that collaterals shall be collected from clients in the form of securities, only by way of ‘margin pledge’, created in the Depository system in accordance with Depositories Regulations. This simply means that if you want to avail margin benefit for trading using your shares as margin, then you can do it only via pledging your shares in favour of 5Paisa via Depository system. This will be effective from 1st September 2020. 

For Demat Account holders who have issued POA in favour of 5paisa:

Giving POA to 5paisa effectively enabled you to avail margin benefit using your shares in Demat account. Effective 1st September 2020, securities held in your demat account will NOT be considered towards margins and fresh transfer of securities from your demat account to Margin account of 5paisa shall be prohibited unless Margin Pledge is created. It means you will have to individually place a request for pledging your shares to avail margin benefit. The process of the same will be seamless and easy as provided below. 

To initiate a margin pledge online*, you will have to follow the following process:

• Go to your ËQ Holdings” section in your 5paisa Mobile app or 5paisa Trade station (Web Platform). 
  
• Select Shares you want to pledge from the list of shares you hold and then Click on “Pledge for Margin” button at the bottom of the page. 
  
• A link for OTP authentication will be generated and sent on your registered Mobile Number and registered Email ID from CDSL (Depository Participant). 
  
• On clicking the link, you will be redirected to CDSL webpage and prompted to enter your PAN or BOID (mandatory in case of PAN exempted clients).
  
• Once the valid PAN / BOID is entered, list of all transactions pending for authentication will be displayed to you. Thereafter, OTP will be generated and sent on registered Mobile Number and registered Email ID of the client. OTP will remain valid for 15 minutes only. 
  
• You will have to then authenticate the same by entering the OTP whereupon the pledge shall be marked in favour of 5paisa.
  
• Once your request is received the margin benefit will be given to you on next Trading day. 
  

Note: *The provision for marking pledge request in the mobile app and web portal will be available by 30th August 2020. You have to pledge shares on CDSL website. 

For Demat Account holders who have NOT issued POA in favour of 5paisa:

For clients who have NOT given POA (which in our case constitutes 90% of our customers) will have very little change in the process. Currently you can avail margin benefit by TPIN authentication process set up by CDSL for online E-DIS. Instead you will also have to follow the same process as listed above for clients having POA with us. 

For Clients availing Margin Trade Funding Facility:

Shares purchased by you upto the value of Debit Balance will stay in Client Unpaid Securities Account (CUSA) for T+6 Days. If you wish to avail margin funding facility then they will have to initiate a Future pledge request of the shares from our website or your mobile app upto T+1 day by 4.00 p.m. If, however, you fail to initiate the Pledge request then the debit balance will be cleared by selling shares in your CUSA account by us on T+7 day. You will also have an option of clearing their debit balance by paying money towards their debit balance.  

One-time process for initiating pledge: As a pro-active step 5Paisa has initiated a pledge request for all the shares lying with us under Margin funding or various collateral accounts. You would have received a notification via SMS and email and from CDSL. You are requested to authenticate the same by following the process listed above. If the process is completed before 31st August 2020 then all the benefits of Margin funding (carry forward of debit balance) and collateral benefit for Derivatives segment will continue on as is basis. If the clients fails to authenticate the pledge by 31st August 2020, then we will have to square off the debit balance or open derivatives position. 

Note: This one-time process is already initiated. Please check your registered email or SMS for notification.

Charges Applicable: 

The above charges will be to your ledger account as and when you pledge or unpledge shares in your account.

 Kindly note that the tariff sheet stands amended accordingly and the same is available on the website for reference.