- You can pledge securities between 7 AM and 6 PM on trading days. However, there are no restrictions on unpledging. The collateral margin from a successful pledge request will be credited to your Zerodha account on the next trading day.
- When you use collateral margin to trade F&O, you must have 50% of the margin requirement in cash or cash equivalents. If not, Zerodha will charge interest at 0.035% per day on the cash component funded by Zerodha. For option buying specifically, Delayed Payment Charges (DPC) of 0.05% per day (₹50 per lakh) or 18% per annum apply only to overnight positions. DPC is charged only on the collateral amount utilised for option buying, not the entire option purchase amount.
- You can use collateral margins from pledging your holdings only with a positive cash balance.
- The cost of pledging is ₹30 + GST per request, per ISIN, 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.
- You can sell pledged instruments without unpledging.
- If you submit an unpledge request before 3:30 PM, your stocks will be available in your demat account for trading on the following day. For requests placed after 3:30 PM, your stocks will be available in your demat account for trading the day after.
- The collateral amount is calculated from the previous closing price of your securities after a haircut and added to the total margin available on Kite. The collateral margin you receive is shown separately in the Funds tab on Kite, in the Collateral section.
- If you have traded using collateral margins and incurred a loss, you will need to bring in additional funds to cover the debit. If you do not add the funds, Zerodha may sell your pledged shares to recover the debit amount.
- Your pledged stocks will be considered for physical delivery obligations if stock F&O contracts expire In The Money (ITM). You must authorise the sale of securities using CDSL Tpin if you have not submitted the Power Of Attorney (POA) or Demat Debit and Pledge Instruction (DDPI).