Hi Ushnota, I want to know if I can purchase Equity Shares Delivery through my Collateral Pledged margins without any cash requirement overnight?
Hi @RISHIT_22739847,
Yes, you can purchase equity delivery shares using your collateral pledged margin without needing cash upfront. However, any debit raised due to this transaction must be cleared by T+4 day. If the debit is not cleared by then, we will be required to liquidate your shares to recover the outstanding amount. Delayed Payment Charges will also be applicable accordingly.
You can check this link for more details: Help Center
I guess you cant… purchase, earlier i had pledged my share to buy equity , but none of the shares were available againts pledge, you can buy only future and option, thats my knowledge about it
if the margin has to be cleared in T+4 days, then how can it be called a purchase of equity against a collateral margin. It is just that you are providing time up till final settlement of fund, till then you need to pay the full amount for settlement or else the equity will be sold. Same thing is available on other broker platform, and over there they clearly mention that following script is not available for mtf and you need to clear outstanding on T+4 day.
At Upstox, users can purchase any stock against their collateral margin. The purchase is billed in the ledger at the end of the day so that the collateral is freed up for users to continue trading without blockage. As per the exchange mandate, users then get 5 days (T+4) to clear the debit.
MTF, on the other hand, is a separate product that currently works only with cash margin and allows trading in over 1100+ eligible stocks. Hope this clarifies things.
Hi,
My UCC is 241680
I had pledged some of my shared 1 week before, and I was using it for my options trading.
Today all of sudden the some of my pledged stocks got liquidated , and I have no clue for what? Please share me the reason? Is it was a glitch?
Any debit arising from options or equity delivery purchases made using margin pledge must be cleared within T+4 days. If the debit remains unpaid, the pledged stock may be sold on the 5th day to clear the outstanding amount. Hope this helps clarify the process.
Can I use pledged margin for stock delivery?
Yes, please check this for all details: Help Center
I want to understand, if we have bought any stock on margin with cash margin, and when we sell those shares, why don’t we get the fund immediately. If the funds are available immediately, like the same what we get after selling the stock from our demat holding, it would be great , as we would be able to churn our capital. Kindly take this as a request .
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@Ushnota - I don’t see collateral from my pledged mutual fund, and it’s already past 9.15. I am not able to open positions. The value of MF pledged is upwards of 10 lacs, and I am seeing just 3k in collateral. Also your customer support is of no use. No reply for something this urgent. no option to call anyone. Mail support takes 48 hours to reply.
Update - seems like despite showing the qty as pledged in holding it got unpledged automatically ( could able to send the request to CDSL for pledging). So the question becomes how it got unpledge when i did not placed any unpledge request.
@Nikhil_Mehta - We checked your account and it appears that an unpledge request was placed earlier for your mutual fund units, and that request got processed today. As a result, the collateral value showing in your account is lower, and you’re unable to use the pledged amount at the moment.
Hi @Ushnota Do I need to maintain a 50:50 cash-to-collateral ratio for equity delivery to avoid the interest of 0.05% per day on the cash shortage?
Hi @SUYASH_1713827,
Equity shares purchased under the delivery product type are required to be purchased by providing cash balance. Purchasing shares using margin pledge is an additional feature offered to the users. When shares are purchased using Margin pledge, the purchased shares are pledged in the CUSPA (Client Unpaid Shares Pledge Account) of the broker. Shares equivalent to 150% of the debit balance in the user wallet are pledged in the CUSPA.
Users can take the delivery of such shares by clearing the debit value in their wallet within 5 days from the Trade date post which the shares in the CUSPA account shall be invoked and liquidated to recover such debit balance.