Can I pledge my shares without POA to get the collateral margin?

Yes, you can pledge the shares in favor of TM/Clearing Member without any POA (Power of Attorney) to get the collateral margin.

For getting the collateral margin, 50% of the margin needs to be compulsorily available in cash or cash equivalent collateral. The ratio of cash margin & collateral margin should be 50:50.

For example, if you have shares worth Rs 1,00,000 & the NSE haircut is 20%. You can now pledge all these shares in favor of Finvasia & get a collateral margin of Rs 80000.

Option 1: – If you have a cash margin of Rs 30000 in your account you can use a total margin of 60000 (Rs 30000 Cash margin + Rs 30000 collateral margin).

Option 2: – If you have a cash margin of Rs 80000 in your account you can use a total margin of 160000 (Rs 80000 Cash margin + Rs 80000 collateral margin).

Option 3: – If you have a cash margin of Rs 100000 in your account you can use a total margin of 180000 (Rs 100000 Cash margin + Rs 80000 collateral margin).

If you don’t maintain a sufficient cash margin and the shortfall is funded by non-cash collateral, there will be delayed payment charges on the shortfall.

Please Note-

-You will only be able to pledge shares already in your demat account.

-The pledge option will not be available for T1 holdings.

-You can pledge your holdings only if you have the equity derivatives segment (F&O) activated in your account. You can activate your FNO segment by raising a ticket in PRISM.

-Shares pledged before 4 PM shall be available for limits on the next working day.

-You would be required to select the segment in which you want to use the collateral margin. For example, if you want to pledge your stocks for trading in Futures & Options segment. So you need to select the FNO segment while processing the pledge request. You can not use this collateral margin for trading in other segments.

-For getting the collateral margin, 50% of the margin needs to be compulsorily available in cash or cash equivalent collateral. The ratio of cash margin & collateral margin should be 50:50.

Below is the link to know about the list of Approved securities for pledging (Cash component & Non-cash component) : https://docs.google.com/spreadsheets/d/1ttguModi_QOhmQ1a1ajZdMUmJI9Bcwqv4OgaAUch5hw/edit#gid=1499446386