A debit (negative) balance in your Rupeezy ledger is expected to be cleared by the next trading day (T+1). If the debit stays unpaid for more than 5 trading days, Rupeezy's risk team can sell your pledged securities on the 6th trading day — to the extent of the outstanding debit — with or without further intimation. This is called the ageing debit square-off, and it's laid out in Rupeezy's RMS Policy.
Why does my account show a debit balance?
Your ledger balance is the running cash account you hold with Rupeezy, and it can slip into debit when money leaves it faster than you've added funds — for example:
- Mark-to-market (MTM) losses debited on an open F&O position.
- A position squared off at a loss larger than your available balance.
- Brokerage, charges, or other dues debited after a trade.
You can check the exact entries behind a debit in your ledger report on Dock.
When can Rupeezy sell my holdings to recover a debit?
You're expected to clear any outstanding dues by T+1 (T is the trading day the debit arose). After that:
- A debit that stays unpaid for more than 5 trading days becomes eligible for the ageing debit square-off.
- On the 6th trading day, Rupeezy can sell your pledged securities to the extent of the ledger debit — not your whole portfolio, just enough to cover the dues.
For example: if a debit from Monday's trades isn't cleared by the following Monday (5 trading days later), Rupeezy can sell pledged holdings that day to recover the amount.
The square-off is at the discretion of Rupeezy's RMS team and can happen with or without prior notice — don't wait for a reminder call before adding funds.
Which holdings can Rupeezy actually sell?
Only pledged shares. Rupeezy can sell shares that are pledged in any of these ways:
- Pledged for margin — shares you've pledged as collateral for trading margin.
- Pledged to CUSPA — shares you bought but haven't fully paid for, such as a T+5 purchase, held in the Client Unpaid Securities Pledgee Account until you clear the debit.
- Pledged for MTF — shares bought with the Margin Trading Facility, which are pledged automatically.
Rupeezy can't sell shares that aren't pledged, even if DDPI is active on your account. DDPI only lets Rupeezy debit shares when you sell them. If you have no pledged shares, the debit simply stays payable.
How do I avoid an ageing debit square-off?
- Add funds as soon as you see a debit — ideally the same day, and no later than T+1.
- Check your ledger regularly, especially after a losing trade or an MTM debit, rather than relying on the app balance alone.
Things to keep in mind
- The sale proceeds are adjusted against your dues; if they don't fully cover the debit, you remain liable for the balance.
- A margin shortfall on F&O positions is handled separately and can attract an exchange margin-shortfall penalty on top.
- MTF positions follow their own square-off rules — margin calls there run on a different clock.
- The full RMS Policy is available with Rupeezy's other policies and procedures.