Margin Against Shares Trading in Demat

Margin against shares is basically a value added service. It allows you to get exposure/ margin against shares in your demat account by keeping them as collateral. The collateral value of these shares is calculated after applying a hair-cut.

The total limit provided for trading under this feature is subjected to having Cash to Collateral ratio of 40:60. This means that to get the complete benefit of your collateral, 40% of the margin will have to be in cash.

Features:-

  • List of scrips available for pledging under MAS: The list of scrips available for pledging under MAS has about 850 stocks in it. This list is decided as per TradeSmart’s internal risk policies. It will be reviewed periodically and updated accordingly.
  • Charges:  The pledging charges will be Rs 60 + GST per scrip irrespective of the quantity. So if you have pledged 100 quantity of Reliance and 200 quantity of ACC you will be charged Rs.120 (60*2) exclusive of the GST. The pledge charges will be debited from your ledger the day you place the pledge request. No charges will be applicable for unpledging.
  • Brokerage Plans: MAS is available for 0.007% (Value Plan) and Rs 15 (Power Plan) brokerage plans only.
  • Trading Platform: It will be available for all NEST platforms (Desktop, Mobile and Browser).
  • Demat account: To avail MAS facility for your account, you should have a  online demat account.

For more details about MAS please read our blog post here

FAQs

What is Margin Against Shares (MAS)?

To give you maximum benefit out of your online demat account, TradeSmart offers Margin Against Shares (MAS) as a value-added service. MAS allows you to use your demat account online to pledge your shares as a collateral and get extra value from your online share trading activities.

How many scrips can be pledged using the MAS service?

The list of scripts available for pledging under MAS includes around 850 stocks. This list is created as per TradeSmart’s internal risk policies. It will be reviewed periodically and updated accordingly.

Which brokerage plans by Trade Smart provide the MAS facility?

MAS is available for 0.007% (Value Plan) and Rs. 15 (Power Plan) brokerage plans only.

Will the MAS facility be available on mobile platforms?

The MAS facility will be available for all NEST platforms (Desktop, Mobile and Browser).

Is there any pre-requisite for availing the MAS facility?

To avail the MAS facility for your account, you should have an online demat account. To trade using this feature, you need to have a cash to a collateral ratio of 40:60 which means you need to have 40% of margin in cash.

What are the charges for MAS facility?

The pledging charges will be Rs. 60 + GST per scrip irrespective of the quantity. So, if you have pledged 100 quantity of Reliance and 200 quantity of ACC you will be charged Rs. 120 (60*2) exclusive of the GST. The pledge charges will be debited from your ledger the day you place the pledge request. No charges will be applicable for unpledging.

How does it work?

To avail the service, you should place a pledge request. The pledge charges will be debited from your ledger the day you place the pledge request. Keep your shares as a collateral using your online demat account. The collateral value is derived after applying the hair-cut value. You can sell pledged shares directly without unpledging.

Where can I find the valuation of pledged shares on the NEST platform?

The valuation of pledged shares after hair-cut will be shown under “Collateral value” column in “RMS View Limits” report in NEST Trader and NEST Web.

Will I be charged for unpledging the shares placed under the MAS facility?

No charges will be applicable for unpledging the shares placed under the MAS facility.

When will I be able to see the cash to collateral benefit in my account?

For funds (pay-in) transferred during market hours, the cash to the collateral benefit of 40:60 ratio will be made available immediately.

Will there be any additional charges?

Delayed Payment Charges (DPC) will be additionally applicable.

Is the MAS service available for commodity trading?

Margin Against Shares (MAS) is available for segments such as Cash, F&O, and Currency Derivatives. MAS service is unavailable for Options Contracts, commodity segment or for buying securities in CNC.

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