Pledge related questions – #103 by Ashish_Chandra1 – General – Trading Q&A by Zerodha

This happened because BSE was recently added to the ASM Long-Term Framework Phase I (see this post – NSE/SURV/48987). The publication states the following:

Members are hereby requested to note that the securities are as attached Appendix I The criteria for inclusion under the Additional Long-Term Monitoring Procedures have been met. The control measures in place shall be in accordance with the provisions of the Additional Long-Term Monitoring Measures (Long Term – ASM) which are as follows:

  • The applicable margin rate shall be 100% as of July 26, 2021 on all open positions as on July 23, 2021 and new positions created as of July 26, 2021.

As explained on this support page, the collateral margin for stocks in the ASM listing is reduced to zero –

Noticeable: In cases where you have stock Pledge Transferred under the ASM, no additional margins will be provided for this stock, because, as stated in the ASM, 100% margin must be charged. The value of the collateral (shown in the trading stations) will decrease by the amount of the value of the collateral received for this stock.

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