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  • Pledge Shares

Pledge Shares. Get Margin. Leverage your portfolio to trade BIG!

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    Up to

    80% Funding

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    Sell pledged

    shares anytime

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    Unlimited

    holding period

Pledge shares & give your trades a boost!
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Pledge Shares

What is Pledge Shares?

With Pledge Shares facility, users can pledge their existing stock portfolio in exchange for ‘collateral margin’. This margin can then be used to take fresh positions in the stock market in intraday, futures & options (selling/writing only) and even delivery trades via Pay Later (MTF). Additionally, no interest is charged on intraday trades placed using margin availed under Pledge Shares facility.

Advantages of Pledge Shares with m.Stock

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    Low haircut. High funding Pledge shares and get up to 80% funding

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    Unlimited holding period Enjoy received margins without any holding period restrictions

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    Get margin on over 550+ stocks Check stock list to pledge shares and boost your trades

How to avail Pledge Shares facility?

Margins will be added to your ‘Available to trade’ balance on the next trading day. Interest, if applicable, will be charged only from the day you actually start using the margin.

Pledge shares for your Options selling & Futures trades

At ZERO interest on 50% margin availed against pledged shares. Interest of 0.027% payable only on margin shortfall beyond 50%. 

While placing F&O orders using Pledge Shares, minimum 50% of the margin requirement needs to be fulfilled in terms of cash margin by the customer and maximum 50% can be availed by pledging shares. 

Let us understand the interest charged on Margin pledge in different scenarios while placing Intraday F&O orders using Pledge Shares. 

Scenario 1: If you have sufficient cash and stock margins 

  • Margin required to create position

    ₹1,10,000

  • Available cash margin

    ₹55,000

  • Margin received against pledged shares

    ₹55,000

As the requisite margin to create the position is available in full and there is no shortfall thereafter,

NO interest will be charged

Scenario 2: If you have extra margin against pledged stocks but no extra cash margin 

  • Margin required to create position

    ₹1,10,000

  • Available cash margin

    ₹50,000

  • Margin received against pledged shares

    ₹70,000

You will be able to create the position by fulfilling the fund shortfall of ₹5,000 from the extra margin against pledged shares available to you.

An interest of 9.99% p.a. will be charged on ₹5,000

Scenario 3: If you have no extra margin against pledged stocks or extra cash margin 

  • Margin required to create position

    ₹1,10,000

  • Available cash margin

    ₹55,000

  • Margin received against pledged shares

    ₹55,000

Now, in case, after placing the order, there is a margin shortfall of ₹10,000, then Interest charged on 

₹10,000 cash margin funded by m.Stock will be 18% p.a. as delayed payment charges (DPC)

Important note: Interest will not be levied on margins received under Pledge Shares, until the margins are utilised by you.

Did you know? You can now trade with 20% ₹0 cash
in Delivery segment?

Yes, use margin received under Pledge Shares to place Pay Later (MTF) orders and enjoy unlimited holding period.
Here’s how you can trade with practically zero cash.

  • Pledge your existing portfolio say HDFC Bank Ltd. worth ₹16 lakh with us
  • We will then provide you trading margin of  ₹12.80 lakh (assuming a 20% haircut)
  • Using this ₹12.80 lakh, you can buy shares of your choice with Pay Later (MTF)

Here's all you need to know about Pledge Shares

Pledge Shares is a facility where you can pledge your existing shares with the broker and in return, the broker will give you capital to trade or invest in the stock market.

Say you want to take an intraday position worth ₹1 lakh but you only have ₹50,000 in your trading account. You need another ₹50,000 to place this order. Now assuming you have shares worth ₹70,000 in your Demat account, you can pledge them and get additional margin for trading. In this case, assuming a 20% haircut, you will get ₹56,000 as collateral margin helping you place your desired intraday order.

Pledge Shares is available in Intraday, Futures & Options (writing/selling only), across all segments – equity and currency. You can even use margins received under Pledge Shares and take fresh positions under Pay Later (MTF) and enjoy unlimited holding period. Know how you can trade with zero capital.

m.Stock does not charge any interest to avail margin with Pledge Shares for Intraday trades. For F&O trades, the interest is ZERO unless there is a margin shortfall. In case of a margin shortfall, an interest of just 0.027% per day, is charged.

m.Stock charges 9.99% p.a. interest on Pledge Shares, which is one of the lowest in the market. So, if you take funding worth ₹100, you will pay ₹9.99 interest in a year, which is ₹0.027 in a day. To elaborate, here are 3 scenarios:

Value of existing stock portfolio Haircut Funding received after haircut Interest payable (@ 9.99% p.a.)
₹10,000 10% ₹9,000 ₹899
₹1,00,000 15% ₹85,000 ₹8,492
₹10,00,000 20% ₹8,00,000 ₹79,920

No, your shares will remain in your Demat account. You will simply have to mark a pledge in favour of m.Stock. When you sell or close your position, the pledge will be removed and the stocks will become free for your use.

With Pay Later (MTF), you get funding against cash available in your trading account. Whereas in Pledge Shares, you pledge your existing stock portfolio with m.Stock and in exchange, you receive funding. Did you know, you can use Pledge Shares and Pay Later (MTF) together?

With m.Stock, you can get up to 80% funding in 700+ stocks. However, funding is providing after accounting for ‘haircut’, which is decided by our Risk Management team. For example, if Infosys Ltd. has a haircut of 15%, then you will receive ₹85,000 in funding against stocks worth ₹1 lakh.

Haircut is a SEBI mandated mechanism, which protects the broker from unexpected price movement. Every stock has a pre-decided haircut, which is deducted from the overall funding amount. For example, if the total value of stocks in your portfolio is ₹1 lakh and the stock haircut is 10%, then the broker will give you funding of ₹90,000.

Margin will be added to your ‘Available to trade’ balance on the next trading day.

Margins or limits will be credited to your m.Stock account on the next trading day (after margin pledge request is raised). However, interest will be charged only from the day you actually start using the margin.

Yes, you can sell pledged stocks, without any restrictions.

Pledge creation charges is ₹0 & closure charges is be ₹32 per PSN (Pledge Sequence Number) per day (+GST) for Pledge Shares facility.

Margin call is received from the broker when the margin available in your trading account is not sufficient to cover your open positions. On receiving margin call, investor must either infuse fresh capital or square-off their position.

In case the margin call is not honored, the RMS team will square-off the position on a best effort basis.

To access Pledge Shares report: Login >> Menu >> Reports >> Pledge/Unpledge

  • In the menu section, under ‘Products’ choose ‘Pledge Shares’
  • Choose stocks to be pledged from list of approved stocks in your Demat holdings
  • Enter quantity and click on ‘Pledge’
  • On the CDSL page, validate pledge using OTP
  • Margins will be added to your ‘Available to trade’ balance on the next trading day
  • You can use this margin to take positions in Intraday, Futures, Options (selling/writing only) and Pay Later (MTF)

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