Please find the important aspects of the above regulatory concepts as under:
(A) MARGIN REPORTING AND COLLECTION IN CASH SEGMENT
- Exchanges will levy penalty on Margin Shortfall in CASH SEGMENT.
- VaR + ELM i.e. Upfront Margin will be needed in Client Account before placing orders.
- COMBINE LEDGER BALANCE across exchange/segments and MARGIN PLEDGE STOCKS will be considered for allowing exposure and margin reporting.
- POA Stocks / CUSA (Client Unpaid Securities Account) Stocks, stocks in Broker Collateral account shall not be considered for allowing exposure and margin reporting.
(B) MARGIN PLEDGE SYSTEM
- The client will create Margin Pledge in favour of “BP EQUITIES PVT. LTD.” to avail exposure as well as margin benefit.
- The process to Pledge Shares for Margin
(i) NON-POA Clients (Demat Account with BP Equities)- Submit duly signed “Pledge Form” to BP Equities Pvt. Ltd.
(ii) NON-POA Clients (Demat Account with other DP) – Submit duly signed “Pledge Form” to his / her DP.
(iii) POA Clients – Client needs to send Margin Pledge request from his / her registered email id to our Demat department on firstname.lastname@example.org (Please take email format from respective RMs/APs.)
STEP-II: DP will process request in CDSL / NSDL.
STEP III: CDSL/NSDL will send link to client’s registered email id and mobile number.
STEP IV: Client will enter PAN number / BO ID; verify Margin Pledge information, select “ALL SEGMENT” and click on generate “OTP”
STEP V: Enter OTP and submit a request.
STEP VI: CDSL/NSDL will authorize request of only “ACTIVE” client if all entered details are correct. CDSL/NSDL will create a pledge in favour of BP Equities Pvt. Ltd. and send a confirmation.
- The process to Release Margin Pledge Shares
Send Pledge Release request to our Demat Department on email@example.com or send duly signed Pledge Release Form.
- The client will be treated as INACTIVE if there is no activity in his / her account in last 12 months.
- Re-KYC will be required to activate an INACTIVE client.
- Verify your Email ID and Mobile Number linked with your Demat Account as CDSL /NSDL will send link and OTP on registered contact details only.
- Margin Pledge request may get rejected due to various reasons such as shortfall of margin, not submitted within the prescribed timeline, etc.
- Unpaid Stock will be kept in Client Unpaid Securities Account (CUSA). We will sell CUSA Stocks if you have not done payment within T+2+4.
- Please check your email and SMS daily basis as we are sending margin shortfall details to you on a daily basis.
- You are requested to Pledge Sufficient / Excess Stocks through Margin Pledge System to enjoy uninterrupted trading.
- For any query related to the new system, you may get in touch with your RMs / APs. You may also write to us at firstname.lastname@example.org.
# Please read SEBI, Exchanges and Depositories Circulars for detailed understanding on the above subject matter.
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