Hi there can i Pledge external funds linked to upstox or i need to sell those external MUTUAL/INDEX FUNDS and buy them again here in upstox.
And if mutual funds are bought in upstox can these collateral pledged margin be used for MIS intraday trading and still avail 4x margin.
Example Mutual Funds bought in UPSTOX
Pledged as collateral
Can this pledged be used for INTRADAY EQUITY TRADING and still avail 4x margin.
I have 10000 pledged mutual/ index funds
Can i use this collateral to trade in EQUITY
For value of 40000 in MIS orders(intraday)
You cannot pledge external mutual/index funds. We recommend transferring them to Upstox to avoid exit load or tax implications.
And yes, once pledged, the collateral margin can be used for MIS (intraday equity) trading, and you can avail up to 4x margin based on the haircut applicable.
1 Like
Any cash component needed or full 100% of pledge can be utilised?
Question 2 can i pledge
HDFC INDEX SENSEX/ NIFTY 50 fund for the same???
@Harsh_49449929 - Yes, 100% collateral can be used without any cash component. List of eligible scrips at any given point of time can be checked here: Accounts > Actions > Margin Pledge > Download Eligible Scrips.
Where can i get option to pledge mutual funds in upstox ? not able to find an option in mobile application can i get info on this
In mobile, go to Portfolio → Holdings → Pledge Tab.
Alternatively, it can also be accessed via Profile → Account → Action → Margin Pledge.
In web, you access it by going to Account → Action → Margin Pledge.
Hope this helps.
I think there are SEBI guidelines wherein 50% of the cash component has to be used and in case it is not being used then the depository charges interest on that amount.
Can you please check and revert
I do tried for this but it shows “Max broker level pledge limit reached” for ICICI Prudential GILT Fund. How to deal with this and how to find securities which are free to pledge ?
You’ll notice an info icon in both the Mobile and Web versions of the Margin Pledge screen, which indicates when the maximum broker-level pledge limit has been reached (screenshot attached for reference).
Securities which are free can be checked in two ways:
- All scrips which are mentioned as Pledge Allowed = Yes in the excel sheet
- or, specifically related to your holdings, whichever scrips are shown as eligible in the Margin Pledge portal - those are allowed to be pledged
Hope this helps.