Cash Segment Margin Reporting & New Margin Pledge System Effective August 1st 2020

Cash Segment Margin Reporting & New Margin Pledge System Effective August 1st 2020

SEBI circular dated November 19, 2019 introduced collection and reporting of margin in Cash Segment like F&O and Currency Segment.  Further, SEBI Circular No. SEBI/HO/MIRSD/DOP/CIR/P/2020/28 dated February 25, 2020 had introduced Pledge system for the purpose of Collection of Margin from the clients.

Please find the important aspects of the above regulatory concepts as under:

 

(A)          MARGIN REPORTING AND COLLECTION IN CASH SEGMENT

  1. Exchanges will levy penalty on Margin Shortfall in CASH SEGMENT.
  2. VaR + ELM i.e. Upfront Margin will be needed in Client Account before placing orders.
  3. COMBINE LEDGER BALANCE across exchange/segments and MARGIN PLEDGE STOCKS will be considered for allowing exposure and margin reporting.
  4. 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

  1. The client will create Margin Pledge in favour of “BP EQUITIES PVT. LTD.” to avail exposure as well as margin benefit.
  2. The process to Pledge Shares for Margin

STEP I   

(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 hiteshpatel@bpwealth.com (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.

  1. The process to Release Margin Pledge Shares

Send Pledge Release request to our Demat Department on hiteshpatel@bpwealth.com or send duly signed Pledge Release Form.

Important Points:

  1. The client will be treated as INACTIVE if there is no activity in his / her account in last 12 months.
  2. Re-KYC will be required to activate an INACTIVE client.
  3. 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.
  4. Margin Pledge request may get rejected due to various reasons such as shortfall of margin, not submitted within the prescribed timeline, etc.
  5. 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.
  6. Please check your email and SMS daily basis as we are sending margin shortfall details to you on a daily basis.
  7. You are requested to Pledge Sufficient / Excess Stocks through Margin Pledge System to enjoy uninterrupted trading.
  8. For any query related to the new system, you may get in touch with your RMs / APs. You may also write to us at support@bpwealth.com.

# Please read SEBI, Exchanges and Depositories Circulars for detailed understanding on the above subject matter.

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