This is going to be a fairly cumbersome shift for the traders and the brokers too. Going ahead, transfer of stocks to the broker pool account will not be permitted. Traders must execute a pledge agreement every time they use stock as margins, which is painful.
Perhaps, the regulator is driven by what happened at Karvy, but that is a one-off case. The problem is that pledge has a cost as each executed pledge entails fee payment to NSDL or to CDSL. Actually, the regulator will be better off putting off this system for some more time.
This is going to be a fairly cumbersome shift for the traders and the brokers too. Going ahead, transfer of stocks to the broker pool account will not be permitted. Traders must execute a pledge agreement every time they use stock as margins, which is painful.
Perhaps, the regulator is driven by what happened at Karvy, but that is a one-off case. The problem is that pledge has a cost as each executed pledge entails fee payment to NSDL or to CDSL. Actually, the regulator will be better off putting off this system for some more time.