Terms of Service for pledging
- The collateral margin will be available on T+1 day for the stocks that are pledged before 5 PM.
- When using collateral margin to trade F&O, the shareholder must have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha. See Will Zerodha provide margin on liquid funds? If losses in F&O are not funded by cash, interest on the debit balance will be charged at 0.05% per day.
- Use of collateral margins from pledging the holdings will only be allowed with a positive cash balance.
- The cost of pledging is ₹30 + GST per instrument, irrespective of the quantity pledged. There are no charges for unpledging.
- This pledge is being created in the name of Zerodha Broking Limited – DP ID: 1208160054378965.
- Pledged instruments can be sold without unpledging. To learn more, see Can pledged instruments be instantly sold without placing an unpledge request?
- The shareholder will receive an email from CDSL to authorise the pledge request. The pledge request needs to be authorised before 7 PM to receive the margins from the next day. See How to pledge shares to get collateral margin?
Pledged stocks will be considered for physical delivery obligations if stock F&O contracts expire In The Money (ITM). To learn more about physical delivery, see What is Zerodha's policy on the physical settlement of equity derivatives on expiry? Clients must authorise the sale of securities using CDSL Tpin if they have not submitted the Power Of Attorney (POA) or Demat Debit and Pledge Instruction (DDPI). To learn more, see What is Power of Attorney (POA)?