Pledging and Re-Pledging of Stocks is the New Regulation given by SEBI vide Circular: SEBI/HO/MIRSD/DOP/CIR/P/2020/28 to get Stock-based Margins!
To protect the interest of investors and traders, SEBI came up with few new rules to get a stock-based margin using the “pledge and re-pledge” mechanism.
THE NEW PLEDGE/RE-PLEDGE SYSTEM:
To avail the Collateral benefits against holdings possessed by the client, who should pledge stocks in favour of Goodwill Wealth Management Pvt Ltd using pledge mechanism which has been provided by Goodwill.
Key benefits of the new pledge system are as under:
- Even after pledging, the stocks will be retained in the client’s Demat a/c while the pledge alone will be created in the favour of Goodwill Wealth Management Pvt Ltd.
- No stock will be pledged without due consent of the Client using the OTP mechanism facilitated by the CDSL.
- The complete track of pledge, re-pledge, and un-pledge of stocks that is done either through clearing member or the clearing corporation level can be viewed in the CDSL depository system using client login credentials.
- In this new system, the Corporate actions like dividends, bonus, rights, etc will get updated directly to the client’s accounts.
The Complete step by step process for Pledge facility is mentioned in the below link where you can give requests for Pledge & Un-Pledge in dedicated client login portal provided on our website www.gwcindia.in-> My Login ->Online Pledge.