New Margin Pledge Mechanism and How it Affects Your Trading With SAS Online.

  • Wednesday, 26 August 2020

Dear Traders 
Please refer to the SEBI circular on " Margin obligations to be given by way of Pledge / Unpledge ".  Let us understand the need for such a mechanism and also how it will affect your trading with SAS Online
The new margin pledge / unpledge mechanism from SEBI is aimed at safeguarding investors against the misuse of client's shares by brokers. As per earlier mechanism, the client was required to transfer shares to brokers Demat account to avail of margin benefit against shares. As a SAS Online client using our Stock Plus service ( earlier called Margin Plus ), you were required to login to the back office and place a pledge request after choosing which stocks you wanted to pledge. At the end of the day, we would run a batch and all requested shares would be transferred to our client collateral account post which you as a client would start getting margin against those shares to trade.  However now SEBI has come out with a new mechanism under which shares will not leave clients Demat account but will be marked in favour of broker via an OTP mechanism with approval from the client. 
As per the circular from September 1st, 2020 brokers can accept collateral from clients in the form of securities, only by way of ‘margin pledge’, created in the Depository system itself. Clients who already have shares pledged by way of the current pledge system and availing of collateral will continue to get collateral benefit till Aug 31st, 2020. However, they would be required to unpledge and re-pledge their holdings by way of new margin pledge mechanism as current system of margin pledge will cease to exist post 31st August 2020.  Please refer how to pledge stocks as per new margin pledge mechanism and ensure you unpledge and repledge as per new mechanism by coordinating with our support teams. Further from Monday, August 24th all fresh pledging would be done as per new margin pledge mechanism where you as a client would be required to approve the same via OTP. 

Please note 

* Like earlier system No need to un-pledge shares first if you want to sell delivery. Once sold, shares will be auto unpledged and marked for payin on T+1.

* To unpledge existing shares please send mail to with a list of shares and quantity by 2 PM. Please ensure that you have enough margin in your account against any open positions. You may upledge and pledge share via new mechanism gradually to avoid margin shortage. Unpledge requests received by 2 PM via mail will be processed the same day post-market and shares will be credited to your DP account by noon the next day. Post that you may repledge via the new mechanism 

* All pledge requests received till 5 PM will be processed on the same day and if the client completes the OTP process by 7 PM he will get collateral starting next day itself for trading. If later then the client will get collateral benefit day after 

How to pledge shares via new pledge mechanism and how much time will it take?