Can we use pledged margin for buying stocks (equity delivery). if yes what are the charges or interest am I supposed to pay?

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can we use pledged margin for buying stocks (equity delivery). if yes what are the charges or interest am I supposed to pay?

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Hi @market_edge,

Yes, you can use the pledge margin to trade in all segments including equity delivery , you need to maintain the negative ledger balance to avoid ageing based square-off.

Below are the scenario for utilizing a 100% collateral amount without a cash balance for buying delivery stocks

  • The amount will be debited, resulting in a negative ledger, which triggers the T+5 ageing debit square-off policy.
  • Margin interest will apply only for the day of the Equity Delivery purchase.
  • DPC interest will be applicable on the negative ledger.

The DPC charges are 0.0438% per day on the negative ledger balance. You may read more about DPC in our Risk policy under “Delay Payment Charges” here.

Hope this clarifies.

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@Prithvi ,

Can you please explain with examples?