Margin Pledge and Repledge (MPR) is a process that allows you to use your Demat holdings as collateral to obtain trading margins from ProStocks. Here’s how it works:

  1. Pledging Securities:

    When you want to trade with ProStocks, you need to maintain margins for your trades. These margins can be in the form of cash or stocks.

    In the traditional system, when a client wants to pledge their stocks to obtain margins, they transfer the securities from their Demat account to the broker’s account. The broker then pledges these securities to the Clearing Corporation.

    However, this transfer of title (ownership) of the securities leaves room for potential misuse by certain brokers.

  2. The New Pledge System:

    To address this issue, a new pledge system was introduced, which went live from August 1, 2020.

    In this new system, the stocks do not leave the investor’s Demat account. Instead, a pledge is marked in favor of the broker.

    The broker is required to open a separate Demat account labeled ‘TMCM – Client Securities Margin Pledge Account’ for this purpose (TMCM stands for Trading Member Clearing Member).

    The broker then re-pledges these securities in favor of the Clearing Corporation and obtains margins.

  3. Benefits of the New Pledge System:

    No Misuse of Securities: Since the stocks remain in the investor’s account, there is less chance of misuse of securities. It also prevents the possibility of pledging one client’s stocks to offer margin to a different client.

    Corporate Actions: In the new pledge system, the client receives all cash and non-cash corporate actions (such as dividends, bonus, rights, etc.) because the stocks are held in the client’s collateral account. 

Please note that the new pledge/re-pledge mechanism enhances investor safety by minimizing the risk of securities misuse and ensuring transparency in the process. If you have any more questions or need further clarification, feel free to ask us!

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Step 1: Request your broker to pledge a specific number of securities

  1. Go to the Back-office under Demat Stock Click on POA Margin Pledge Request.
  2. A window with your holdings quantity will open , mention the quantity and click on save.
  3. Once you click on save button record save successfully will display.
  4. ProStocks team take data every two hours between 10 am to 4 pm from Monday to Friday and upload the request in CDSL Depository system.

Step 2: Once your pledge request is submitted by ProStocks to Depository system, as mentioned above, the depository (CDSL in case of ProStocks) will send you a link to your registered mobile/email id . Alternatively , You may use the below given link also.

Step 3: Visit the link you have received on your registered mail ID or mobile number or you can use the link given above also directly

Step 4: Once you click the link, the authentication process starts. The link will redirect you to the CDSL web page, where you are required to verify your PAN number or Demat account number

Step 5: After verifying the details, click on generate OTP to authorise the pledge

Step 6: You will receive an OTP on your registered mail ID and mobile number

Step 7: Enter the OTP to authenticate your request on the CDSL platform. You will receive a confirmation message for your pledging margin request, and the pledge request will take a couple of hours to be activated

Note Note: NRI client will receive OTP on email and SMS on Indian mobile number, if provided. CDSL Depository does not send SMS on international number.

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To add or amend nominee follow below steps.

Step 1 - If you are using Prostocks Star Web application then go to Status option available on your web dashboard. (Refer below screenshot)
If you are using Prostocks Star Mobile application then go to Profile option and click on Add/Modify.
Step 2 – Then click on BO Modification.
Step 3 – After clicking on BO Modification you will get an option to Add or Amend Nominee click on that.
Step 4 – Next you’ll get a Nomination Form where you need to fill the details of your nominee. After filling all the details click on Generate PDF and then click on Generate Digitally Signed PDF.
Step 5 – After clicking on Generate Digitally Signed PDF you’ll get an option to send authentication code on your registered mobile number. First confirm your mobile number and then click on Send code to Mobile. You’ll get 5 digits security code on your registered mobile number, once you submit the code, you’ll get an option to Sign Now click on that it will take you to the NSDL E-sign page.
Step 6 – In last step you need to do E-sign using your Aadhar Number and OTP to complete the process.
Step 7 – After completing E-sign please send digitally signed PDF on [email protected]. Mention “Request for Nominee Addition” in subject with your Client Code.

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What is an After Market Order (AMO)?

After-Market Order (AMO): An order that is placed post-market closing and before the beginning of the next trading day.

How can one place an After-Market Order?

To place an After Market Order, please follow these steps:

  • Step 1: Search and select the stock you want to place an order in from your watchlist.
  • Step 2: Select the stock and click on either Buy or Sell
  • Step 3: The order entry window will open, click on the AMO checkbox and swipe to place your order.
  • Step 4: Verify placed order in the order book – can be modified or canceled.

When can one place an After-Market Order?

Segment Start Time End Time
Equity (Pre-Open) 04:00 pm 08:58 am
Equity (Normal Market hours) 09:08 am 09:13 am
Equity (Post Closing) 03:30 pm 03:38 pm
Futures and Options 04:00 pm 09:13 am
Currency Derivatives 05:00 pm 08:58 am

What are the advantages of an After Market Order?

An AMO is very useful for people who are busy during market hours but wish to place orders nevertheless. Orders can be planned at one’s convenience even before the market opens.

When does an After Market Order execute?

Equity Segment: Orders that are placed by 08:58 am and meet the Pre-Opening order criteria will get pushed to the Exchange at 09:00 am, otherwise at 09:15 am and remain open till the market closes for the day, after which they will stand canceled.

Futures and Options, and Currency Derivatives AMO will get executed during normal market hours if the price is matched, or else such orders will stand canceled.

Pre-Opening order criteria:

  • Scrip should be a part of the pre-opening session
  • The order should be a normal limit order and not any type of conditional order.

What happens if the After Market Order is not executed?

After Market Orders that do not get executed during normal market hours will stand canceled.

What are After Market Order charges?

We do not collect any additional charge for such orders.

Are After Market Orders available for E-DIS clients?

AMO Equity sell orders can be placed before doing E-DIS, however, E-DIS has to be done before 09:00 am.

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We have an important update regarding Quarterly settlement of Running Account of Client’s Funds lying with ProStocks:

What is present practice of Quarterly Settlement of funds?

Present SEBI regulations requires that every stock broker should do settlement of funds for each client by returning excess (surplus) funds (balance) lying with Stock broker, once in every calendar quarter and gap between two such settlement should not be more than 90 days.

Stock broker are free to decide day of settlement and which can different day for different client.

This does not mean client will not get funds as and when requested. Clients are free to request withdrawal of funds as and when they wish and as many time as they want.

This settlement means whether the client has requested or not, Stock broker must return the excess funds once in every calendar quarter.

How to calculate surplus (excess) funds:

Clear Credit balance on the day of settlement:

Less: Funds PayIn due from client in next two working days

Less: Margin Obligation on unsettled open position

Less: 125% of Margin Obligation on the day of settlement

Balance if positive is Surplus / Excess funds. If negative it is deemed settlement, as nothing is payable under settlement mechanism.

What is the new change?

As per new SEBI circular SEBI/HO/MIRSD/DOP/P/CIR/2022/101, effective from Oct 2022 to Dec 2022 quarter,

All Stock Brokers across exchange and segment needs to do settlement of funds of all their client on First Friday of every calendar quarter. This has market wide impact.

First such date for settlement is 7th October 2022. We will initiate the settlement on the 7th and the funds should come to your bank account between 7th Oct 2022 night and 10th October 2022 morning. Since all the Stock brokers are doing across all their client on one single day may cause pressure on banking System and there may or may not be delay.

Important points to note:

  • Surplus funds as per above method will be returned to you, you can transfer them back on 8th or 9th of October for use on 10th of October i.e. Monday.
  • Avoid transferring funds to ProStocks using net Banking Payment Gateway on 6th Oct and 7th Oct 2022 ( except HDFC Bank or Yes bank Account) , as we do not get funds on real-time from payment gateway service provider. Please use NEFT / RTGS / IMPS / UPI or HDFC and Yes Bank Net Banking gateway.

Upcoming 4 Quarterly settlement dates are:

  • 7th October 2022
  • 6th January 2023
  • 7th April 2023
  • 7th July 2023
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