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Facility to sell pledged stocks: This is a feature we're working on making available, allowing you to sell pledged stocks without having to request for unpledge and wait until they are received to your demat account.
Pledging of shares has been made mandatory in the capital markets effective September 1, 2020.
An investor can keep extra cash/pledge other holdings for the stipulated margin required. In addition, the shares bought one day cannot be sold the next day. So, if an investor bought shares on, say, Monday, then he can only sell them after receiving the delivery of shares. So, in T+2, they can sell these on Wednesday.
An investor can keep extra cash/pledge other holdings for the stipulated margin required. In addition, the shares bought one day cannot be sold the next day. So, if an investor bought shares on, say, Monday, then he can only sell them after receiving the delivery of shares. So, in T+2, they can sell these on Wednesday.
Remember, the pledging of promoter's shares is not necessarily bad. Even if a company has a high percentage of promoter's shares being pledged, if its operating cash flow is constantly increasing and the company has good prospects, it can be worth investing in.
Promoters can pledge their shares to avoid losing trade opportunities due to low cash margins. They can get a loan after haircut deduction. The collateral margin received from these pledged shares can be used for equity trading, futures, and options writing.
If you fail to initiate the Pledge request or clear the debit balance by making the requisite payment, then the debit balance will be cleared by us on T+7day by selling the shares from our CUSA account.
Definition: Pledging of shares is one of the options that the promoters of companies use to secure loans to meet working capital requirement, personal needs and fund other ventures or acquisitions.In case promoters fail to make up for the difference, lenders can sell the shares in the open market to recover the money.