To comply with regulatory requirements, pledging your stocks is mandatory for maintaining Margin Trading Facility (MTF) positions. Here’s a quick guide:
Pledging Process:
Go to Star Back Office (Link to BO) → Portfolio → Pledge/Unpledge → MTF Pledge.
Enter the OTP to authorise and complete the process.
Selling MTF Stocks:
Stocks under MTF can be sold directly without unpledging.
Sale proceeds will be available for trading on the next day.
What Happens If You Don’t Pledge?
The MTF position will convert to a delivery trade (CNC).
Insufficient funds for CNC will result in a negative balance in your account.
If unresolved, Samco may liquidate the shares to recover the outstanding amount.
Liquidation Policy
If margin shortfall isn’t covered, Samco reserves the right to liquidate pledged shares.
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