Streamlining Pledge and margin Process

Streamlining Pledge and margin Process

Dear Customers, 

Both yesterday and today a lot of clients could not enjoy margin benefit as the new pledge process is implemented. Instead of getting positive margin to trade, most of you got negative margin raising doubt on the platform. Yesterday, I also wrote on "Changes in Net Available Margin for Today" explaining the issues we were facing and the causes responsible. 

Now, I am listing down measures we are taking between today and tomorrow to streamlining the pledge and margin process so that all clients can enjoy margin benefit and trading can come back to normal.

1. Payout of all shares with 5paisa: As we provide margin funding facility, we hold shares both as funded stock and collateral. Sometimes even if client comes in credit the shares continue to remain with us as clients continue to use funding facility. Between today and tomorrow 1st half all shares of clients with credit balance, clients with POA and all other cases apart from Margin Funding debit will transferred to their respective DP account. Clients will then have to raise a pledge request from their DP account and margin benefit will be available on the next trading day.

2. Clients having Debit balance: Clients having debit balance have shares with us in 2 accounts i.e. MTF funded account and MTF collateral account. For shares in Collateral account we will allow clients to place a pledge request from holdings page of Trade station web portal or our mobile app. This will be available from tomorrow i.e. 3rd September afternoon to debit clients. Once a client completes his Pledge initiation process, shares will be transferred to their demat account and will be available as "DP Pledge" stock. For shares in MTF funded account we will initiate a pledge request. All Clients having debit balance will have option to pledge till this weekend. If they complete pledge process their debits will continue but if not then we will clear the debit balance on this Monday i.e. 7th September.
Please note: This will only be done for debits older than September 1st. 

Apart from these measures one important margin benefit is for shares sold by clients. I had communicated that we will allow credit of shares sold to purchase any other stock or take derivative position. But from last 2 days we are not able to do "Ëarly Pay in" which has a cut off of 9 p.m. because overall exchange pay in and process is getting delayed. It will take couple of days for this process to streamline. Once done you will enjoy instant credit of your sale to purchase other stocks.