Not every holding in your demat account is eligible for margin pledge. A stock or fund can be blocked from pledging for a few different reasons — some set by the exchange or depository, and one — mutual funds — because Rupeezy hasn't launched support for it yet.
Why is a specific holding not pledgeable?
- It's not on Rupeezy's approved securities list. Rupeezy publishes the securities eligible for margin pledge — along with the haircut applied to each — at rupeezy.in/approved-securities. This list is reviewed periodically; a holding outside it can't be pledged, regardless of how much of it you own.
- It's a mutual fund unit. Pledging mutual fund units is on Rupeezy's roadmap and is currently in progress — until it ships, MF units in your demat account can't be pledged.
- The clearing corporation's limit for that security is full. Each approved security has a cap on the total quantity that can be pledged across all investors. Once that cap is reached, no more of that stock can be pledged until the limit frees up.
- The stock's risk value (VAR) is at 100%. Highly volatile securities carry a Value at Risk (VAR) margin, and a stock at 100% VAR is treated as ineligible for further pledging.
- The holding is under a lock-in. Shares from an IPO allotment, ESOPs, or other lock-in periods can't be pledged until the lock-in ends.
For the full current list of what's eligible, see Which stocks and mutual funds can I pledge with Rupeezy for collateral margin?
What can I do if my holding isn't eligible?
Check Positions > Holdings > Pledge in the Rupeezy app — if a holding is greyed out or missing a Pledge option, it isn't currently eligible for one of the reasons above. Eligibility can change as the approved list and clearing-corporation limits are updated, so a holding that isn't pledgeable today may become eligible later.