What if corporate action is declared on a stock pledged?

What if corporate action is declared on a stock pledged?

  • A client will be eligible for corporate action even if their stock is pledged with Jainam. To know more see, how to know about the upcoming corporate action?
  • Charges for pledge/unpledge during corporate action on pledged scrips: If any corporate action is announced on a scrip pledged at Jainam, then that scrip will be auto-unpledged once and repledged by CDSL again to enable the client to benefit from such corporate action. Thus, an announcement of corporate action on any scrip pledged will lead to double charges per ISIN per pledge request. In addition to this, these charges will be levied for each pledge request in that ISIN.

For example,

  • If Mr. X has pledged 100 Reliance for margin in the following manner:

    PLEDGING TIME OF PLEDGINGPLEDGE CHARGES APPLICABLE
    pledged 50 qtyon Monday at 1.00 pm ₹5 per pledge request
    pledged 10 qty on Monday at 5.00 pm ₹5 per pledge request
    pledged 40 qtyon Friday  ₹5 per pledge request
    Total pledged qty = 100 Total pledge charges = ₹15 
  • If the pledge of Reliance 100 qty is done as above given pattern by Mr. X and now a corporate action has been declared by Reliance, then CDSL will charge an auto-unpledge and repledge charge at ₹ 30. (₹15 for unpledge and ₹15 for repledge).