Pledge (37)

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

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.