Pledge
What happens if the 50-50 ratio is not maintained?
If the required 50% cash component is not maintained, an interest charge of 15% per annum will be levied on the shortfall amount. This charge will be debited to your ledger on a weekly basis until the shortfall is rectified. Interest calculation: If ...
What is the cash-collateral margin requirement at FYERS?
When trading using collateral margins from pledged holdings, you are required to maintain at least 50% of the margin requirement in cash or cash-equivalent instruments. This policy ensures compliance with industry regulations and promotes financial ...
Is it possible to sell my holdings after submitting a pledge request?
Yes, you can sell your holdings after raising a pledge request, effective from 1st December 2024. Although pledge and unpledge requests are processed at the end of the day (EOD), we still allow the sale of pledged shares in the interim. Points to ...
How can you optimize the use of the cash component or cash equivalent at FYERS?
Understanding how to optimally utilise the cash component or cash equivalent can significantly enhance your trading strategies. To help you grasp its utility, we've illustrated its application across four different scenarios: Scenario 1: Pure Cash ...
What is cash component or cash equivalent and how to make use of it?
A cash component or cash equivalent represents a form of collateral margin that arises from pledging certain securities. This includes a range of liquid assets such as money market instruments, government securities, ETFs, and liquid mutual funds. ...
Can I sell my pledged shares without unpledging them at FYERS?
Yes, you can sell shares that are currently pledged, effective from 1st December 2024. However, if you have utilised your collateral margin, any quantity of shares you sell will release the corresponding margin, which will be adjusted accordingly. ...
Why are stocks unpledged when clearing member limits are exceeded?
Clearing members have pre-set limits defined by the Clearing Corporation regarding how many shares of a specific company can be pledged to them. When this limit is crossed, the pledged shares are automatically unpledged and returned to the client's ...
Where to find the list of cash equivalent securities and mutual funds at FYERS?
Exchanges consider over 350 securities and mutual funds as cash equivalents. These assets can act as a cash component when you're trading in the F&O Segment. To illustrate: Suppose Mr. X possesses Liquidbees worth ₹10 Lakhs and is looking to trade in ...
What is a Haircut and how does it impact the pledge margin?
A 'haircut' is essentially a risk-control measure. It's the difference between the market value of your securities and the value that's considered for the pledged securities. For instance, if you pledge securities valued at ₹20,00,000 and the ...
Is pledging my fixed deposit to trade in F&O contracts possible at FYERS?
Currently, we at FYERS don't accept Fixed Deposits for pledging to facilitate trading in Futures and Options (F&O) contracts. This policy stems from operational and reconciliation constraints. However, keeping in mind the dynamic nature of financial ...
How can I place a pledge request in FYERS?
Easily pledge your NSE Approved Securities and Mutual funds online using OTP with us. Here's a step-by-step guide to assist you:The step-by-step procedure of the same is as below: Accessing Pledge Portal: Visit pledge.fyers.in and log in using your ...
How long does it take to get margins after pledging?
After you have authorised your pledge request using the OTP process, the Central Depository Services Limited (CDSL) typically confirms the status in about 10 minutes. However, the margin reflecting this pledge will only be available in your trading ...
Can I use the collateral from pledged Demat holdings for stock investments?
No, it is not permissible to use the collateral amount received from pledging your Demat holdings to purchase stocks in the Cash N Carry (CNC) segment for overnight positions. Nevertheless, you are allowed to utilise this collateral for intraday ...
How long does it take to unpledge holdings at FYERS?
If an unpledge request for holdings is submitted before 3:30 PM on a working day, the holdings will be unpledged within 24-48 working hours. However, if you wish to sell your holdings, you can do so without unpledging. For more details, kindly refer ...
How to unpledge my holdings in FYERS?
Unpledging your holdings with FYERS is a straightforward and online process. Here's a step-by-step guide to help you: Access the Pledge Portal: Log in to our Pledge Portal on the FYERS platform. Navigate to the 'Unpledge' Tab: Once inside the portal, ...
When will my pledged stocks be invoked at FYERS?
If, after trading with your pledged margins, your account indicates a debit balance (a negative figure), you are obligated to clear this by transferring additional cash funds. Failing to infuse the required funds will lead to our risk team invoking ...
What happens to my stocks after pledging at FYERS?
When you decide to pledge your stocks, they are not transferred to FYERS but rather sent to the exchange. Consequently, the exchange releases the margin corresponding to these stocks. FYERS, on its part, credits the pledge margins to your trading ...