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From Sep 1st, 2020 as per SEBI Circular all collateral and funded stock can only be held by way of margin pledge.
Further, you would be required to first pledge your shares as per new margin pledge mechanism and then only you would be able to Buy fresh stock in NRML against your collateral. Please note delivery buying against actual cash margin present in trading accounts in NRML would continue as usual under Equity Plus.
Further, once you have bought shares in NRML under equity plus, as per circular all funded stock would be required to be held by way of margin pledge in your DP account itself. The value of shares equal to the debit amount is called funded stock.
We will be initiating pledge requests from our end on all funded stock and you would be required to approve the same via OTP mechanism. Please note once shares are purchased under MTF we will be initiating the pledge request on T day itself and the same would have to be approved failing which further buying in your account will be restricted from T+3 and we will have to liquidate your funded stock as per SEBI norms by T+5 post 2:30 pm.
* Pledge request initiated by SAS Online on T day itself
* Delivery of funded stock from exchange T+2
* Further position not allowed from T+3 if request not approved
* Liquidation of securities on T+5 post 2:30 pm if pledge not approved via OTP ( Weekends / Trading Holidays will not be counted while calculating T+5 )
Example:- Say your Equity Plus service is active and you have 1 lac in your Trading Account . You buy 4 lac worth Reliance given that 4X limit is available in EQ+ . Now Buying bill of 4 lac would be posted in Funded Ledger and the Financial Ledger balance will continue to be 1 lac . We will initiate MTF pledge from our end on T day itself which you would be required to approve via OTP mechanism.
To continue to get further delivery limit in your account under EQ+ you will be required to approve pledge request against funded stock bought in your account though your account may be in credit.
Example: - You transfer 5 lac to Trading account and buy delivery worth 5 lac . We will mark this 5 lac also as funded stock though your account is not in negative and send you an MTF pledge request . This way your delivery limit will be open and you will be able to buy delivery upto 4X the total amount which in this case is upto 20 lac. If you don't approve the MTF pledge request you won't be able to buy further delivery in your account as limit will be zero.
BTST will not be allowed in MTF as upfront margin will be short.
Example:- Let's say you Buy a stock on Monday for Rs 100/- a margin of Rs 20/- (20% of the transaction value) will be levied in your account until pay in of funds done to exchange on T+2 and when you sell the same stock on Tuesday (we generally do Early pay in so that no margin is levied) but since your stock will be credited on Wednesday to your account we do not have stocks for doing early pay in to avoid sell margin. In this case a sell margin of Rs 20 /- (20% of the transaction value) will be levied in your account so in total Rs 40 /- will be blocked as margin which is 40% of the transaction value but since you have purchased in Equity Plus you have only 25%( if you purchase any stock on which leverage is 4X) of the transaction value and remaining is funded by SAS Online now since margin levied is 40% and actual funds available is 25% the difference 15% is reported as short margin to exchange and penalties are levied accordingly.
Please note: -
● If client does not authorize pledge request on T day via OTP then benefit of collateral will cease to exist from T+3 beginning of day and client won't be able to take further position
● Margin penalty may be levied in case non-authorization of pledge request leads to shortage of margin on T+2
● No need to unpledge shares first if you want to sell delivery. Shares sold will be auto unpledged and marked for payin.
● Clients can check pledge requests from given Link by entering PAN and approve via OTP.
●Please note your MTF will be temporarily disabled if you do not trade under MTF for 3 months at a stretch. MTF can be re-enabled by sending mail to email@example.com from registered user ID . Only MTF will be disabled in case you
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