It is now easy as never before to pledge stocks for margin purpose. Just place an online pledge request to add to your collateral and avail more funding.
Watch our detailed video here to know how to add it online.
How does pledging stocks help?
You may pledge stocks for short term and long term funding. Short term funding is where stocks are pledged to get additional leverage in F&O segment. The long term funding is called as MTF (Margin Trade Funding).
As seen in the video, there are two options available to pledge stocks. One is the Margin Pledge funding and the other is the MTF Collateral pledge request. To avail collateral benefit for F&O trades, use the margin pledge option and to avail funding under MTF use MTF Collateral pledge option.
Points to note while pledging stocks online
- All online pledge requests are to be made before 5 pm
- All pledge requests are to be confirmed before 8 pm on the same day. Margin benefits will not be available if the pledge requests are accepted after 8pm
- MTF Collateral Pledge requests of clients who are enabled for MTF segment will only be accepted.
- Requests made beyond 5 pm are not valid and will be removed at the end of the day
- Requests made on Saturdays and Sundays will be not be accepted
- You get Value of stocks pledged after haircut as collateral benefit in F&O segment, provided the cash collateral ratio at any time is minimum 1:1
- For MTF trading, value of pledged stocks after haircut will be provided as collateral benefit. Here the cash collateral ratio doesn't come into picture.
In case of queries, do write to us at firstname.lastname@example.org..