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Why were the shares I pledged squared off?

If you have traded with Collateral margins & incurred a loss, you will need to bring in additional funds to make up for the MTM loss. In case you don't the RMS team could sell your pledged shares to make up for the loss.

The process of Notification and unpledge of Stocks is - 

Day 1: The client has traded and MTM resulted in Negative Cash in the account.

Day 2: We will get to know the list of clients who are in Negative and Notify clients through SMS and Email. 

Day 3: If the client hasn't funded the account, even after 24hrs of notifying, we will unpledged the stocks. 

Day 4: We sell the unpledged shares to clear the debt amount.

Note
1. Once we unpledge your shares we will not be re-initiating the pledge, even if you add funds/clear obligations. In case, you want collateral margins, you need to pledge your shares again.
2. When you unpledge your shares your open positions can be squared off if you don't have adequate cash balance to cover the exchange stipulated margin (SPAN+exposure)