Question 1

What is Pledge?

Accepted Answer

Pledge for Margin is a facility that allows you to use eligible holdings in your demat account—such as stocks, ETFs, or SGBs—as collateral to receive margin for trading. Instead of blocking cash, you can pledge these holdings and receive margin based on their collateral value after applicable haircuts.
When securities are pledged, they remain in your demat account and only a lien is created in favour of the broker. The broker may re-pledge these securities with the clearing corporation (National Clearing Corporation-NCL) to obtain margin, as per SEBI-prescribed mechanisms. You continue to receive corporate benefits like dividends and bonuses.

Question 2

What can I pledge to get margin?

Accepted Answer

You can pledge eligible holdings that appear in the “Available to Pledge” section of your account. This typically includes:
• Stocks approved by the clearing corporation • Certain Exchange-Traded Funds (ETFs)  including Nifty BeES, Liquid BeES, etc. • Approved Sovereign Gold Bonds (SGBs)
Note: Eligibility and haircut percentages vary by security and are displayed in-app.

Question 3

What can I use the collateral margin for?

Accepted Answer

Collateral margin can be used for the following trading purposes:
• Equity intraday trading • Futures buying and selling • Options writing (selling)
Note: For overnight F&O positions, you must maintain at least 50% of the margin requirement in cash or cash-equivalent securities. If you don't, a cash shortfall charge (Delayed Payment Charge) will apply.

Question 4

Is it safe to pledge my securities?

Accepted Answer

Yes. Pledging on Sahi follows SEBI-regulated depository processes. Your securities remain in your demat account throughout the pledge period, and only a lien is marked in favour of the broker.
• The broker cannot transfer or misuse your securities • Corporate actions like dividends, bonuses, and splits continue as usual • Pledged securities can be sold during market hours • OTP verification via the CDSL  adds an additional security layer

Question 5

Where can I see my total margin available?

Accepted Answer

You can view your total available margin in the Funds section of the app. This shows:
• Cash Balance: Actual cash in your trading account
• Collateral Margin: Margin from your pledged securities
• Total Available Margin: Sum of cash + collateral (subject to usage rules)
Details of pledged holdings and their margin contribution are available in the Pledge section under Portfolio.

Question 6

Why can I not pledge my holdings?

Accepted Answer

Your holdings might not be available for pledge due to several reasons:
1. Not on Approved List: Only certain stocks, ETFs, and SGBs that are approved by the clearing corporation can be pledged. 
2. Shares Not Yet in Demat: Stocks you bought today will be available for pledge only after they settle in your demat account (T+1 - next trading day).
3. Existing Pledge Request: If you already have a pending pledge request for the same stock, you cannot initiate another until the first one completes.
5. Fractional Units: Fractional quantities of ETFs cannot be pledged. Only whole units are accepted.
6. High-Risk Stock (VAR 100%): Stocks with 100% Value at Risk are considered too risky and cannot be pledged.
7. Member-wise Limit Reached: The clearing corporation limits how much of each security can be pledged across all clients of a broker. If this limit is reached, no more pledges are accepted for that security.
Note: You can only pledge holdings between 8:00 AM and 6:00 PM on trading days.

Question 7

Can I pledge stocks I bought today?

Accepted Answer

No. Shares purchased today become eligible for pledge only after they are credited to your demat account post settlement, which typically happens on T+1 (the next trading day). Weekends and market holidays are excluded from settlement days.

Question 8

Can I pledge mutual fund units?

Accepted Answer

No. Mutual fund units are currently not supported for pledging.

Question 9

Is there a maximum margin I can receive from pledging?

Accepted Answer

Yes. There is a maximum collateral margin cap of ₹50,00,000 per user as per internal risk policy. If your potential margin exceeds this limit, the system still allows pledging only up to the applicable cap.

Question 10

When can I pledge my holdings?

Accepted Answer

You will receive your additional margin from pledge almost instantly in 15mins if pledged during 8am - 6pm on trading days.

Question 11

What happens if I don't complete the CDSL OTP in time?

Accepted Answer

The OTP issued by CDSL is valid for 20 minutes after initiating the pledge request..
If you don't complete the OTP within 20 minutes:
• The pledge request will automatically fail
• No margin will be credited
• No charges will be applied
• You can initiate a new pledge request
Note: The OTP is sent by CDSL and may take a few minutes to arrive via SMS and email. If you don't receive it immediately, wait and check your email as well.

Question 12

What is 'Haircut' in Pledge?

Accepted Answer

A haircut is the percentage reduction applied to a security’s value when calculating collateral margin. It acts as a standard risk buffer used across the industry to account for normal price fluctuations, ensuring the pledged value remains adequate even during volatile market moves.
This approach allows brokers to provide margin against securities while managing sudden price changes, and it does not affect the market value or ownership of your holdings.
Example of Haircut in Pledge:
For example, if you pledge a stock worth ₹1,000 with a 20% haircut:
• ₹200 is reserved as the haircut (safety margin)
• You receive ₹800 as your pledge/collateral margin
Your stock still remains worth ₹1,000 and you can sell it at market price anytime. The haircut only affects how much margin you receive, not the stock's actual value.
Note: Haircut percentages vary by stock and are decided by the risk policy of the broker based on the stock's volatility and liquidity. Higher-risk stocks have higher haircuts.

Question 13

How is the pledged value/margin calculated?

Accepted Answer

The margin you receive from pledging depends on two factors:
1. Price Used
The pledged value is based on the LOWER of:
• Last Traded Price (LTP) 
• Previous day's closing price
This conservative approach protects against intraday volatility.
2. Haircut Percentage
Each stock has a specific haircut percentage. The formula is:
Margin = min(LTP, Previous Close) × (1 - Haircut%) × Quantity
Example
Stock: XYZ Ltd, Quantity: 100 shares
• LTP: ₹500
• Previous Close: ₹480
• Haircut: 25%
Margin = min(500, 480) × (1 - 0.25) × 100 = 480 × 0.75 × 100 = ₹36,000

Question 14

Why is the margin different for each stock?

Accepted Answer

The haircut/margin percentage is decided by our Risk Management team in-line with SEBI guidelines. It is different for each stock based on several factors:
• Stock's historical volatility
• Liquidity (trading volume)
• Market capitalization
• Clearing corporation's risk assessment
Riskier/more volatile stocks have higher haircuts, resulting in lower margin per rupee of holding value. Blue-chip, high-liquidity stocks typically have lower haircuts.
Note: Haircut percentages can change. The clearing corporation updates these periodically, and we revise our rates accordingly.

Question 15

Does my collateral margin change during the day?

Accepted Answer

Yes, your collateral margin can change throughout the trading day because:
• Margin is calculated using min(LTP, Previous Close)
• When LTP drops below previous close, your margin decreases
• When LTP rises above previous close, margin stays at previous close level (until next day)
At the start of each trading day, the margin is recalculated based on the new previous close price.

Question 16

What is the charge for pledging for unpledging?

Accepted Answer

A charge of ₹15 + GST is applied per ISIN (unique stock) for each pledge and unpledge request.

Question 17

What is the Cash Shortfall Charge / Delayed Payment Charge (DPC)?

Accepted Answer

As per exchange regulations, for F&O positions, at least 50% of the margin must be from  cash or cash-equivalent securities. The remaining 50% can be non-cash collateral (pledged stocks).
If you hold overnight F&O positions without maintaining the 50% cash component, a cash shortfall charge is applied on the shortfall amount.
Cash Shortfall Rate
• 0.05% per day (inclusive of GST) on the shortfall amount
• Approximately 18% per annum
Example
You have F&O positions requiring ₹2,00,000 margin. You should have at least ₹1,00,000 in cash. If you only have ₹60,000 cash and rest from collateral:
• Cash shortfall = ₹1,00,000 - ₹60,000 = ₹40,000
• Daily DPC = ₹40,000 × 0.05% = ₹20
Note: Cash-equivalent securities (like Liquid BeES, Liquid Mutual Funds) count toward the 50% cash requirement and don't attract DPC.

Question 18

What happens if my account balance is negative?

Accepted Answer

If your Funds balance goes negative, here's what you need to know:
Daily Charge
A Delayed Payment Charge (DPC) of 0.05% per day (inclusive of GST) is applied on the negative amount until it's cleared.
After 5 Trading Days
If the negative balance continues for 5 consecutive trading days, a portion of your pledged shares may be sold by the risk management team to recover the amount. You can also sell your pledged or free shares to make your balance positive.

Question 19

Can I sell my pledged holdings?

Accepted Answer

Yes, you can sell your pledged holdings anytime during normal market hours without placing a separate unpledge request first.
When you sell pledged shares:
• The shares will be unpledged automatically and removed from your collateral
• You will continue to receive margin on the sold shares till end of the trading day
• Sell margin from the shares will be credited to your account on the next trading day
           • Unpledge charges (₹15 + GST per ISIN) apply

Question 20

What happens if I sell more than my free quantity?

Accepted Answer

You can sell your shares whether in free or pledged state without any worries. If your sell quantity exceeds your free (unpledged) holdings, the sell order will still be executed without placing any additional unpledge request. The portion of pledged shares that you sold will be unpledged by our team at 6:00 pm and the sell margin will be added to your account on the next trading day. 
Example
You have 100 shares: 60 pledged, 40 free. You sell 70 shares.
• All 70 shares get sold instantly at the price mentioned by you
• 40 free shares are sold immediately and margin is added to your balance
• 30 pledged shares will be unpledged at EOD by our team and margin will be available on the next trading
• Our team unpledges the required quantity at end of day (around 6 PM)
• Unpledge charges apply (₹15 + GST)

Question 21

Can I unpledge my holdings without selling them?

Accepted Answer

Currently, holdings cannot be unpledged without selling. No interest is charged on pledged margin, and pledged securities remain in your demat account throughout the pledge period. However, you can sell your pledged shares without any restrictions.

Question 22

What do the different pledge statuses mean?

Accepted Answer

Success
Your pledge is complete. Margin has been credited to your account.
Pending
Your pledge request is being processed. This could mean:
• Waiting for CDSL OTP completion
• Waiting for clearing corporation (NCL) to confirm repledge
• Waiting for margin system to credit the amount
Failed
The pledge request was not successful. Possible reasons:
• CDSL OTP timeout (20 minutes exceeded)
• OTP verification failed
• Clearing corporation rejected the repledge
• Network/technical issues

Question 23

Why does it show 'Pledge in Progress' if I've already received the margin?

Accepted Answer

The pledge process has multiple stages:
1. CDSL Pledge (your authorization)
2. NCL Repledge (clearing corporation)
3. Order system margin addition (our system)
Sometimes the margin is credited faster than the status update. The 'Pledge in Progress' status may lag behind the actual margin credit.
If you've received the margin but status still shows 'In Progress', wait for a few mins, the status will change to success.

Question 24

Can I cancel a pending pledge request?

Accepted Answer

No, once a pledge request is submitted and sent to CDSL, it cannot be cancelled.

Question 25

What happens to my pledge during corporate actions (bonus, split, merger)?

Accepted Answer

Since your pledged shares remain in your demat account, you're eligible for all corporate actions:
Dividends
Dividends are credited directly to your bank account as usual.
Bonus Shares
Bonus shares are credited to your demat. The bonus shares won't be automatically pledged - you can pledge them separately if needed.
Stock Split
Your pledged quantity adjusts automatically based on the split ratio. Margin recalculates accordingly.

Question 26

What happens if a stock is removed from the approved pledge list?

Accepted Answer

If the Risk team or clearing corporation removes a stock from the eligible list:
• Your existing pledge remains valid - however, you will not get any margin against it any longer
• You cannot pledge additional quantity of that stock
• You can still sell those pledged shares normally
• Once unpledged or sold, you cannot re-pledge that stock
Note: This typically happens when a stock becomes too volatile or illiquid.

Question 27

What if the haircut for a stock increases?

Accepted Answer

If the clearing corporation or Risk team increases the haircut percentage for a stock your margin from that stock decreases from the next trading day

Question 28

What is the ₹50 lakh maximum pledge limit?

Accepted Answer

There is a maximum collateral margin cap of ₹50,00,000 (50 lakhs) per user as per our internal risk policy. If you require a higher margin, you may reach out to the team through our support channels. 
This means:
• The total collateral margin you can receive from all your pledged holdings combined cannot exceed ₹50 lakhs
• This limit is evaluated in real-time including mark-to-market (MTM) value of your pledged stocks
• The cap applies at the time of pledging - the system prevents you from pledging beyond this limit

Question 29

What if I already have ₹50 lakhs margin and want to pledge more?

Accepted Answer

If you've already reached the ₹50 lakh cap, you cannot pledge additional holdings. If you require a higher margin, you may reach out to the team through our support channels.

Question 30

What if my pledged stocks appreciate and margin goes above ₹50 lakhs?

Accepted Answer

If the price of your pledged stocks increases after pledging, your margin will increase beyond ₹50 lakhs - and that's allowed!
• The ₹50 lakh cap only applies at the time of pledging
• Post-pledge appreciation is credited automatically
• You continue to enjoy the higher margin
Example
You pledge stocks worth ₹48 lakhs margin. Stock prices rise 10%. Your margin becomes ₹52.8 lakhs. You keep all ₹52.8 lakhs margin - no reduction.

Question 31

What if my pledged stocks fall in value - can I pledge more?

Accepted Answer

Yes! If the value of your pledged stocks drops, your total margin reduces, creating room for additional pledges.
Example
• You had ₹50 lakhs margin from pledged stocks
• Stock prices drop, margin reduces to ₹42 lakhs
• You now have room to pledge additional stocks worth up to ₹8 lakhs margin
The ₹50 lakh cap is evaluated in real-time based on current margin value, not the original pledge value.

Question 32

How is the ₹50 lakh limit calculated - value or margin?

Accepted Answer

The ₹50 lakh limit applies to the MARGIN amount, not the stock value.
Example
You have stocks worth ₹1 crore with an average 50% haircut:
• Stock value: ₹1,00,00,000
• Margin after haircut: ₹50,00,000
• You can pledge all of it (margin = ₹50L, exactly at cap)
So you can pledge holdings worth much more than ₹50 lakhs, as long as the resulting margin (after haircut) doesn't exceed ₹50 lakhs.

Question 33

Does existing margin count toward the ₹50 lakh cap?

Accepted Answer

Yes, the cap considers your total collateral margin including existing pledges.
Example
• You already have ₹35 lakhs margin from previous pledges
• You try to pledge new stocks worth ₹20 lakhs margin
• Total would be ₹55 lakhs - exceeds cap
• Selection screen appears, auto-selecting stocks worth only ₹15 lakhs margin
The system always ensures: Existing Margin + New Pledge ≤ ₹50 lakhs

Question 34

What is the 50% cash rule for F&O?

Accepted Answer

As per exchange regulations, for F&O overnight positions, the margin requirement is split into two components:
• 50% must be in Cash or Cash-Equivalent Collateral
• 50% can be from Non-Cash Collateral (pledged stocks)

Question 35

What counts as Cash Equivalent?

Accepted Answer

Actual cash in trading account
ETFs like Liquidbees, SGBs that are marked as cash collateral in the pledge list.
Example
For a position requiring ₹1,00,000 margin:
• Minimum ₹50,000 must be cash/cash-equivalent
• Remaining ₹50,000 can be from pledged stocks
If you don't maintain 50% cash, DPC charges apply on the shortfall.

Question 36

Can I trade with zero cash and only collateral margin?

Accepted Answer

Yes, you can take positions using only collateral margin, but:
For Intraday F&O
No cash requirement. You can use 100% collateral.
For Intraday Positions
No cash requirement. You can use 100% collateral.
For Overnight/Carry-Forward Positions
The 50% cash rule applies. If you use more than 50% non-cash collateral, DPC charges apply on the shortfall amount (0.05% per day).
Note: This means you can still hold overnight positions without cash - you'll just pay interest on the shortfall amount.

Question 37

I am not receiving OTP for pledge. What should I do?

Accepted Answer

The OTP and email are sent by CDSL, not Sahi. Here's what you can do:
1. Wait a few minutes - CDSL OTPs may take up to 5 minutes to arrive
2. Check your email - CDSL sends OTP to both mobile and registered email
3. Check spam/junk folder for the email OTP
4. Ensure your mobile number registered with CDSL is active and has network
5. Try the Resend OTP option on the CDSL page
If OTP still doesn't arrive, you may need to contact CDSL or update your contact details with the depository.