Explain the new pledge process

Explain the new pledge process

Currently 5paisa provides you the facility to take exposure by using your shares either lying in your Demat account (Only in case of POA clients) or in our account (CUSA and Collateral Account). From September 01, 2020 you can avail the facility of exposure by pledging you shares.
 
Pledge is the process whereby the shares in your Demat account are given as security in exchange through your broker for availing the margin benefit.. The shares will NOT move out from your Demat account but rather a pledge will be created in favour of 5paisa Capital Ltd.
 
For example: You have shares worth Rs 1,00,000. You can now pledge all these shares in favour of 5paisa. Once the shares are pledged we will provide you with margin benefit after applying hair-cut of about 20% on the stock. Then you will get a limit of Rs 80,000 in your trading account as margin. 


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