paytm: Paytm Money gets a new margin pledge function, here’s how it works

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NEW DELHI: Payment money, the subsidiary of payment solutions provider Paytm, has a new feature called ‘Margin commitment‘. This new feature allows users to pledge their existing stocks and ETFs against a safety margin that can be used to trade stocks, ETFs, futures and options.
Margin Pledge is a process that allows users to pledge their stocks to the broker for a safety margin that can be used for trading. For example, an investor who owns shares worth Rs.2,000,000. Now there is a trading opportunity that the investor cannot use due to a lack of funds. The user can pledge his existing shares to the broker. The broker takes a haircut of say 20% off the total value of the shares, i.e. Rs 40,000, and gives the residual value of Rs 1,60,000 as a margin of safety that can be used for trading opportunities.
The company mentions that collateral is received within 30 minutes during trading hours and the collateral calculation is done in real time. Pledged shares remain in the users’ Demat accounts, are eligible for all corporate actions and can also be sold directly. There is a minimum charge of Rs 10 + GST ​​per share for any pledge and pledge request.
This function is available to selected users and is made available to other users. The feature is currently available on Android and website and will be available on iOS soon.
Recently, Paytm Money has launched a wealth and investment advisory marketplace on its platform to provide curated advisory services and products to retail investors. Paytm Money has teamed up with the start-up WealthDesk to offer investment portfolios called “WealthBaskets” as the first step in building the consulting ecosystem.

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