The system automatically selects, confiscates and sells pledged securities based on the logic below. This is a completely automated, system-driven process with no manual intervention.
If you have pledged only shares
The system identifies the securities with the lowest market price. This means:
- The shortfall is covered precisely, with the minimum number of shares
- Over-liquidation is avoided
- Charges are applied proportionately
Example
Company A is priced at Rs. 560 and Company B at Rs. 4,000. If there is a shortfall of Rs. 500, the system selects shares of Company A, which minimises the units sold.
If you have pledged only mutual funds
The system selects units from the mutual fund with the lowest NAV (net asset value) first.
If you have pledged both shares and mutual funds
Shares are prioritised, starting with the one with the lowest market price. Mutual funds are selected only if the shares are insufficient to cover the shortfall.