What is CUSPA? (Client unpaid securities Pledge account )
1. If you purchase shares and fail to make the full payment, the shares will be transferred to CUSPA.
2. Similarly, if you buy shares under MTF and do not confirm the OTP, the shares will be blocked/pledged for the remaining amount on T+1 day.
Example
Client A bought 100 qty @ 1000 (100,000) of security under MTF and did not confirm the OTP as per the process. User has a cash balance of ₹60,000 in the account. This will create a net debit of ₹40,000 in his account. During payout we will hold shares worth up to (40,000*150%) of the debit value from the account.
What is the difference between Pledge and Auto Pledge?
1. In Margin pledge, users can pledge their own shares to avail the margin for F&O and Equity (Intraday and Delivery) trading.
2. In auto pledge, the shares are pledged by Upstox under CUSPA for unpaid amount.
Settlement period
1. Shares are auto pledged under CUSPA for 8 days. Pledge is released only after the settlement period. During this period the shares are blocked.
2. Securities pledged in the CUSPA shall be held maximum upto T+1+5. Such unpaid shares may be confiscated anytime within such a maximum time limit
3. Shares will be auto released only after T+1+7 days (8 days).
Pledge Charges
Auto-pledge charges are ₹50/- + GST
Unpledge Charges
Auto-unpledge charges are ₹50/- + GST
*Notification is sent to the users informing about the auto pledging of the shares.