Now pledge your shares for extra margin

Now pledge your shares for extra margin

In consonant with our philosophy at TradeSmart Online to bring in new products and services which will prove beneficial to your trading, we take this opportunity to announce the introduction of Margin against shares (MAS) services.

What is Margin against shares?


Margin against shares is basically a value added service. It allows you to get exposure/ margin against shares in your demat account by keeping them as collateral. The collateral value of these shares is calculated after applying a hair-cut.
The total limit provided for trading under this feature is subjected to having Cash to Collateral ratio of 40:60. This means that to get the complete benefit of your collateral, 40% of the margin will have to be in cash.

Let us take an example:  ABC has cash balance of Rs 40,000 in his account and has pledged shares worth Rs 1 lakh of ACC for margin benefit. If the haircut for ACC is 15%, then the collateral value of the shares after hair-cut will be Rs 85,000. Since the the total limit provided will be in the ratio of 40:60, ABC will get total limit of Rs 1,00,000 (Rs 40,000 cash + Rs 60,000 collateral).

Also Read : SINE – Our intelligent mobile trading app

Formula for calculating collateral value after Hair-cut:

(Quantity of the stock pledged x Previous day closing price) x (100% – Haircut% for the stock)

Check the hair-cut percentage for various scrips on our website.
Before explaining the process to get margin against your shares let us discuss few of the features of MAS.

  1. Segments & product types available for MAS:
    Segment Product type
    Cash MIS, NRML(Only NSE cash), CO
    F&O MIS, NRML, BO, CO
    Currency Derivatives MIS, NRML, CO

    MAS will not be available for buying securities in CNC and for buying Options contracts. Also, MAS will not available for trading in the commodity segment.

  2. List of scrips available for pledging under MAS: The list of scrips available for pledging under MAS has about 850 stocks in it. This list is decided as per TradeSmart Online’s internal risk policies. It will be reviewed periodically and updated accordingly.
  3. Charges: The pledging charges will be Rs 60 + service tax per scrip irrespective of the quantity. So if you have pledged 100 quantity of Reliance and 200 quantity of ACC you will be charged Rs.120 (60*2) exclusive of the service tax. The pledge charges will be debited from your ledger the day you place the pledge request. No charges will be applicable for unpledging.
  4. Delayed payment charges (DPC): For F&O and currency trading, the Exchanges accept 50% margin in cash and 50% in shares. The collateral received from you will be given to the exchange against your margin requirements. However, we’d like to provide you a higher collateral benefit (60%) for intraday purpose. In case the end of the day cash margin is less than 50% of the margin utilized, delayed payment charge @ 0.05% per day will be levied on the amount funded by us to maintain the cash:collateral ratio at 50:50. For Cash segment the delayed payment charge @ 0.05% per day will be levied on the total ledger debit. If there is no ledger debit at the end of the day, these charges will not be levied.
  5. Brokerage Plans: MAS is available for 0.007% (Value Plan) and Rs 15 (Power Plan) brokerage plans only.
  6. Trading Platform: It will be available for all NEST platforms (Desktop, Mobile and Browser).
  7. Corporate Action: In case of any corporate action (except rights issue) for pledged stocks the benefits of corporate action will be transferred to you.

Trading Account

Where to view collateral benefit in the trading terminal?


Collateral benefit could be viewed in NEST Trader in RMS View Limits>Direct Collateral

Also Read : EquiMax – Introducing upto 4X exposure in delivery

How to pledge the shares for margin?


The request for share pledging has to be placed through BOX.  All pledge requests received till 4.00 pm on trading days will be processed the same day and the benefit will be available for trading the next trading day. Any requests received after that will be processed on the next working day.

How to un-pledge the shares?


The shares given for pledging could be un-pledged from BOX. All unpledge requests received till 2.00 pm on trading days will be processed the same day and will be transferred to your holdings within a day. Any requests received after that will be processed on the next working day.
However, if you have used margin given against your collateral or if there is ledger debit in your account, then the unpledge request will be rejected.
Pledging and Un-pledging request received on Saturday before 12.00 pm will be processed on the same day and the benefit will be available for trading the next trading day.

Shares PledgeWe are excited to launch MAS and are confident that it will benefit you with trading. We will continue add new features to this as we go forward. Please feel free to post your queries/suggestions in the comments section below and we shall make sure that they are answered at the earliest.

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24 Comments

  • Sandy says:

    What is hair-cut?

    • Trade Smart Online says:

      Hello Sandy,
      Since the stock prices keep changing every second how do we value a stock?

      Well, we take help of a parameter called hair-cut. This means, based on the risk in any stock we discount the value of the stock by that much amount for the purpose of valuation.
      Ex: Let’s say a stock’s market rate is Rs 100 and the haircut percentage is 15%. Then the value of stock will be considered at Rs 85 (Rs 100 – 15% of 100) for the purpose of collateral value.

    • Pradeep kumar tripathi says:

      Ha sir your trade charge is more to other broker . You take value trade charge but other take only brokerage charge why

      • Trade Smart Online says:

        Hello Pradeep
        There seems to be a misunderstanding. What exactly do you mean by value trade charges? Can you please give an example?

        • Pradeep kumar tripathi says:

          I pay value trade charge Rs. 15 but sharekhan is not take value trade charge he take broking charge only my Id no. YUPP60. you want to checks

          • Trade Smart Online says:

            Hello Pradeep,
            As per your telephonic conversation with one of our executive, your query regarding Rs.15 demat transaction charge, is resolved to your satisfaction. You can also take the help of online chat support available on our website for any query.

  • DR N K BABU says:

    it is applicable for now trader also or not

    • Trade Smart Online says:

      Hello Dr N K Babu,
      Share pledge service is not applicable to NOW traders. You may shift your account to NEST trader in case you want to avail this service.

  • Piyush says:

    Don’t you think the charges for pledging is too much i.e Rs.60 per script. where as the normal broker do not charge anything for this facility. Then why are you charging?

    • Trade Smart Online says:

      Hello Piyush,
      As we are a discount broking firm and charge you very less brokerage as compared to other brokers. We charge a very nominal of Rs.60 for pledge and also no cost involved for unpledge.

  • […] case you want an extra intraday exposure with less margin then you may use Margin Against Shares. You can also refer EquiMax product to get higher exposure in equity […]

  • Bhushan says:

    TSO is not fit for pledging. Rates are super high.

    • Trade Smart Online says:

      There seems some confusion here. We charge just Rs.60 for pledging shares for availing higher intraday exposure in your trading account. In case you want to pledge shares in any bank for taking loan then the pledge charge would be Rs. 200. Hope we addressed your query.

  • vinit says:

    trading software and app is very poor……
    kabh holding dikhate hai ya kabhi bhi holding gayab ho jati hai…..

    • Trade Smart Online says:

      Hello Vinit,
      As per your conversation with one of our executive, it seems that you were trying to get the data on weekend. Your transaction details will not be uploaded in the trading software on weekends. However, on weekends you can see holdings in BOX back office.

  • […] Also Read Now Pledge your shares for extra margin […]

  • Rajendra Singh panwar says:

    Margin is avail in holding without pledging of share or not and rs60 is one day charges only or for month

    • Trade Smart Online says:

      Hello Rajendra,
      To get the higher exposure, you are required to pledge the shares which are there in your demat account. Without pledging, extra exposure cannot be availed. Rs.60 is charged only when you request for pledging. We don’t charge when you unpledge the same shares.

  • Devidas says:

    Devidas
    What is your levies percentage ? Because I earn Rs 720 in intraday trading but deduct (levies) Rs 544 in contract note and only Rs 176 credited in my demate account.

    • Trade Smart Online says:

      Hello Devidas,
      Kindly refer our statutory charges levied apart from brokerage. In your case, you have selected Rs.15/order plan. In this plan Rs.15 is charged on each executed order that you place, irrespective of the quantity in one order. You have placed multiple orders in a single day on which you have been charged 544. In case you trade small volume then you might change your brokerage plan to 0.7 paise plan. We will also arrange someone to explain in detail about the brokerage plans.

  • muhammad naseem ansary , yukm14 says:

    how can I transfer my shares to my VNS account from my account with another broker and what will be the charges thereof?

    • Trade Smart Online says:

      Hello Muhammad,
      You must have received DIS (Delivery instruction slips) while opening account with other broker. You need to fill in DIS issued by other broker and attach Client Master Copy(You can download from BOX > My Profile section) of VNS account and submit with that broker. There will be no charge from our side. You need to check with that broker if there are any charges applicable.

  • Abhay says:

    Do you accept liquidBees as cash equivalent (for the 50% cash margin requirement for overnight F&O positions)? Will I have to pledge the liquidbees or simply having liquidbees in my demat is sufficient? What other forms of cash equivlalent margin you accept (Bank FD etc?). Please provide details.

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