Comment on Online pledging of stocks for trading F&O

devendra dholakia commented on 11 Feb 2017, 01:45 PM

First of all congratulations for a fantastic platform. Both the mobile app as well as web based kite are mind blowing.

Now to my question/query.

Lets say one fine morning the stock market collapses by say 50 % whereas clients have only given margins of 12 % to 16 % and god forbid Zerodha defaults/goes bust then in that case does the exchange sell of all the pledged stocks even of the client who has sufficient margin and is not in default??
This is very important as in a way it penalises the client who wishes to keep large amount of safety margin and hence keeps larger ledger balance as well as securities pledged with Zerodha. Or does the exchange know which client/s are responsible for default and hence only invokes their pledged shares???(sounds unlikely)

Also do the shares in Zerodha demat, (which are not pledged) , get affected ??

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