Collateral margin can be used to buy shares in equity delivery. It plays a crucial role in managing transactions efficiently. Here’s how it is utilised in equity delivery

  • Initial Deduction – When buying shares under the equity delivery, the transaction amount is deducted from the collateral margin.
  • Cash Balance Requirement – By the end of the trading day, investors must ensure their cash balance covers the transaction.The transaction will be visible in the ledger, and the account can go negative if there are insufficient funds
  • Trading with Negative Balance – Investors can continue trading using collateral, even with a negative cash balance.
  • Five-Day Settlement – A maximum of five days is allowed to clear dues while still using collateral for transactions.

Below are the applicable terms and conditions.

1. Eligibility Criteria

The user can buy stocks for delivery even if they don’t have enough funds in their account, and can trade on any stock available on the Upstox platform

2. Eligible Stock: 

All scrips are eligible for this feature.

3. Exposure

The available Margin Pledge value for use will be determined after deducting the haircut value. The haircut will be the higher of the exchange-suggested rate or the rate determined by Upstox.

4. CUSPA: 

CUSPA stands for "Client Unpaid Securities Pledge Account." Stocks purchased using a margin pledge will be pledged under CUSPA. A maximum of 150% of the debit ledger value can be pledged under CUSPA. Click here to know in detail about CUSPA

5. Monitoring of Position / Pledge

Both the Margin Pledge and CUSPA pledged stocks will be marked to market and continuously monitored. Necessary liquidation actions may be taken if required.

6. Applicable Charges:

The user shall be responsible for the Margin Pledge, CUSPA pledge/unpledge,interest on the debit ledger balance, and any liquidation or confiscation charges (if

applicable) To know about the charges, refer to our pricing. 

7. Permitted Duration: 

Stocks shall be held in CUSPA up to 5 days from the trade date. Click here to know in detail about CUSPA.

8. Liquidation Rules:

Stocks in the CUSPA pledge may be liquidated any time after 5 days from the purchase date. If the market value of the CUSPA pledged shares falls to or below 70% of the debit value, the CUSPA pledge will be confiscated. If the ledger remains in debit after the confiscation of the CUSPA pledged shares, Upstox may confiscate Margin Pledge shares to recover the outstanding debit value.

9. RMS rules

No new exposure will be granted against margin pledge stocks from the 5th day if the ledger balance continues to be in debit from the date the debit first occurred.

10. Limitation of Liability

To the fullest extent permitted by law, Upstox is not liable for any direct, indirect, incidental, special, consequential, or punitive damages arising from your use of the Feature, including but not limited to loss of profits, data, or trading opportunities.

11. Changes to Terms

We may update these Terms occasionally. By continuing to use the Feature, you agree to the updated Terms.