Announcements

The Exchange has decided to remove 1,010 scrips from their list of ‘Approved Securities for Margin Pledge’.

What does this mean?
Starting from 1 August 2024, the Exchange will gradually increase the haircut percentage on these 1,010 scrips, eventually making it 100% by 1 November 2024.
- From 1 August: 40%
- From 1 September: 60%
- From 1 October: 80%
- From 1 November: 100%

What is the impact?
Due to this, the number of approved Securities for Margin Pledge will reduce to 720 (from 1,730) by 1 November 2024. The list includes some popular names like Adani Power, YES Bank, Suzlon, Bharat Dynamics, and Paytm.

Why is this being done?
This measure is being taken to ensure that only highly liquid and stable stocks are used as collateral, reducing risks for clearing houses and the broader financial system.

How will it impact you?
As the haircut on these scrips increases gradually, you need to ensure there is sufficient cash balance in your Upstox account.

In case of a cash shortfall, you may incur a penalty, or we may have to sell your pledged stocks to cover the shortfall.

Please review the attached list of scrips and the circular, and make any necessary adjustments to your portfolio to avoid issues.

What is Margin Pledge?
Margin Pledge lets you use your stocks, ETFs, or SGBs as collateral to get extra margin for F&O trading. You don’t get the full amount as collateral. A part of the pledged value is deducted to cover risks. This is known as a haircut. For example, if your stock is worth ₹100 and the haircut is ₹15, you'll get ₹85 to trade with in F&O.

Thank you for your understanding.

List of scrips removed: Click here
Circular: Click here