New Delhi: paytm moneyThe subsidiary of payment solutions provider Paytm has launched a new feature called ‘margin pledge, This new feature will enable users to pledge their existing stocks and ETFs in exchange for a collateralized margin that can be used to trade in stocks, ETFs, futures and options.
Margin Pledge is a process in which users pledge their stock to the broker in exchange for a collateralized margin which can be used for trading. For example, an investor who has shares worth Rs 2,00,000. Now trading opportunity comes but due to paucity of funds the investor is unable to seize it. The user can pledge his existing stock to the broker. The broker deducts 20% from the total value of the shares, i.e. Rs.40,000 and gives the remaining value of Rs.1,60,000 as a collateral margin which can be used for trading opportunities.
The company mentions that collateral is received within 30 minutes during trading hours and that collateral is calculated in real time. The pledged stocks remain in the user’s demat accounts, are eligible for all corporate actions, and can also be sold outright. A minimum charge of Rs.10 + GST per stock will be levied on each pledge and non-pledge request.
This feature is available for select users and is being rolled out to more users. This feature is currently available on Android and will be available on the website and iOS soon.
recently, Paytm Money introduced a wealth and investment advisory marketplace on its platform to offer curated advisory services and products to retail investors. Paytm Money has partnered with start-up Wealthdesk to offer an investment portfolio called ‘WealthBaskets’ as a first step in building an advisory ecosystem.
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