What happens if the value of the stock pledged at Jainam decreases or increases?

What happens if the value of the stock pledged at Jainam decreases or increases?

If the stock price increases: The market value of the pledged shares increases. This generally improves the margin/collateral position, subject to the applicable margin requirements. 
•    If the stock price decreases: The market value of the pledged shares decreases. This can reduce the available collateral and may result in a margin shortfall. The client may then need to bring in additional funds/securities or take other action as required to maintain the required margin. 
•    Important: The shares remain pledged while the MTF position is open. A change in their market value does not by itself mean that the pledge is released.

Impact of Pledged Stock Value

Understand how changes in the market value of pledged securities can affect your available collateral and margin position.


Have a question?

Email Us: customer.care@jainam.in   |   Call Us: (0261) 6725555