This is with regards to SEBI circular SEBI/HO/MIRSD/DOP/CIR/P/2020/28 pertaining to Margin obligations to be given by way of Margin Pledge/Re-pledge, we further wish to inform you that " funded stock" (i.e stocks bought under E-Margin/MTF Product) are to be held by the Broker (TM ) only by way of Pledge.

In compliance with the said regulations, we will be initiating MTF / E-margin Pledge request in the favor of HDFC securities - “Client securities under Margin funding account” .

Position taken upto 13th December 2021:

a) If you have an existing MTF Position (s) for which MTF / E-margin pledge is not accepted then no further buying will be allowed across the products till the time MTF / E-margin pledge is accepted, however Square-off of open positions will be allowed.

Position taken on and after 14th December 2021:

a) You are required to authenticate and accept the pledge request on T+3. You will receive link from the respective depository on T+3 day. Failing to accept the MTF Pledge request will lead into squaring up of position on T+4 day.

b) If you square off your MTF / E-margin position on T+3 day, still you need to accept the pledge, in order to avoid additional funds hold from your bank account or to avoid penalty on account of margin shortfall, if any.

Example:
If Mr A has bought 100 share of ITC on 14th December 2021 Tuesday i.e T - day , Mr A will receive a link from respective depository on T+3 trading day i.e. Friday 17th December 2021 , Mr A has to authenticate and accept the pledge request on T+3 day itself, else on subsequent trading day i.e 20th December 2021 being T+ 4 Day the MTF position of the said security will be squared off.

The process on MTF / E-margin pledge acceptance is as below:

• NSDL/CDSL shall send MTF/E -margin Pledge request link to your registered email Id and mobile number as updated in DP records.
• You will have to authenticate the MTF / E-margin Pledge request link by entering your PAN or Demat Account number.
• Post authentication, you will be displayed a list of securities along with the quantity to be pledged in the favour of HDFC Securities - “Client Securities under Margin funding account”.
• Post validating the details, you have to click on the 'Generate OTP' button. NSDL/CDSL shall send an OTP to your registered email id and mobile number as updated in DP records.
• You will have to enter the OTP received on your registered email id and mobile number to accept the MTF / E-margin Pledge request.
• Success message will be displayed to you by NSDL/CDSL on entering valid OTP.

For any query, you may connect with your Relationship Manager or call the Customer Care department on 022-39109400