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 securities from your holdings 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 securities from your account 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 liquidate 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?
The ageing-debit square-off doesn't reach every share in your demat account — it depends on how your holdings are held:
- Pledged shares — if shares are pledged as collateral against your account, Rupeezy sells those to recover the debit.
- Unpledged shares, with DDPI — if no pledge is available but you've submitted a DDPI, Rupeezy can square off holdings from your demat to the extent of the debit.
- No pledge and no DDPI — Rupeezy can't sell your holdings. The debit still remains payable, along with everything else that follows from an unpaid due.
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.