What is Margin Pledge & Repledge (MPR)?

Margin Pledge and Repledge (MPR) is the process of using your demat holdings as collateral, to avail of trading margins from your broker. This collateral margin will be made available depending on the pledge value after deducting the applicable haircut. It can be used for trading in both equity and F&O.

As per new pledging norms, approved securities in a client's holdings can be marked as a lien/ pledged in favour of Geojit, against which buying power will be given (after accounting for the applicable haircut). While doing so, the client gives consent to the broker to repledge the securities to the Clearing Corporation in order to avail of the required margins. The advantage of this system is that the securities remain in the investor's demat account and hence all corporate actions are directly credited to the investor's bank/demat account.

Margin requirements vary based on segment and product type- For example, overnight F&O positions require a minimum of 50% of the margin to be in the form of cash. The remaining can be maintained as collateral margins

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