Step 1 – Mobile User, Click on BO Modification button on top right hand side inside profile menu.

Web User, Click on BO Modification menu inside profile menu

What is Buyback of shares?

Share or stock buyback is the practice where companies decide to purchase their own share from their existing shareholders either through a tender offer or through an open market.

How do companies buy back their shares from share holders?

Companies buy back their shares by two methods, either by the Open Market or through Tender offer.

Open Market offer: Companies can buyback their shares directly from open market by the sellers. This buyback can last for months as disclosed by the company to the SEBI.

Tender Market offer: Companies offer a buy back of its shares at a particular price at which investors can apply. The tender market buybacks can be applied through stock broker’s platforms.

What is the Process to tender Buyback of shares through ProStocks web application for POA clients?

ProStocks offer buyback of shares through its trading application.

Margin Pledge and Repledge (MPR) is a process that allows you to use your Demat holdings as collateral to obtain trading margins from ProStocks. Here’s how it works:

1. Pledging Securities:

   When you want to trade with ProStocks, you need to maintain margins for your trades. These margins can be in the form of cash or stocks.

   In the traditional system, when a client wants to pledge their stocks to obtain margins, they transfer the securities from their Demat account to the broker’s account. The broker then pledges these securities to the Clearing Corporation.

   However, this transfer of title (ownership) of the securities leaves room for potential misuse by certain brokers.

2. The New Pledge System:

   To address this issue, a new pledge system was introduced, which went live from August 1, 2020.

   In this new system, the stocks do not leave the investor’s Demat account. Instead, a pledge is marked in favor of the broker.

   The broker is required to open a separate Demat account labeled ‘TMCM – Client Securities Margin Pledge Account’ for this purpose (TMCM stands for Trading Member Clearing Member).

   The broker then re-pledges these securities in favor of the Clearing Corporation and obtains margins.

3. Benefits of the New Pledge System:

   No Misuse of Securities: Since the stocks remain in the investor’s account, there is less chance of misuse of securities. It also prevents the possibility of pledging one client’s stocks to offer margin to a different client.

   Corporate Actions: In the new pledge system, the client receives all cash and non-cash corporate actions (such as dividends, bonus, rights, etc.) because the stocks are held in the client’s collateral account. 

4. What is the process of margin pledge and re-pledge?

   What is the process of margin pledge and re-pledge through the trading platform?

   What is the process of margin pledge and re-pledge through Back-Office?

   Please note that the new pledge/re-pledge mechanism enhances investor safety by minimizing the risk of securities misuse and ensuring transparency in the process. If you have any more questions or need further clarification, feel free to ask us!

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In Web Back-Office

Step 1: Request your broker to pledge a specific number of securities

1. Go to the Back-office under Demat Stock Click on POA Margin Pledge Request.
   
2. A window with your holdings quantity will open , mention the quantity and click on save.
   
3. Once you click on save button record save successfully will display.
   
4. ProStocks team take data every two hours between 10 am to 4 pm from Monday to Friday and upload the request in CDSL Depository system.

In Mobile Back Office

Step 1: Request your broker to pledge a specific number of securities 

1. Go to Mobile back office Click on Stock Movement tab.
   
2. A new tab in Stock Movement will open than click on Pledge Stock.
   
3. The List of the holdings will get displayed, mention the Pledge Qty in the tab and click on Save button on top.
   
4. A Pop up will be displayed to save the data where we need to click on YES and request will be submitted.
   

Step 2: Once your pledge request is submitted by ProStocks to Depository system, as mentioned above, the depository (CDSL in case of ProStocks) will send you a link to your registered mobile/email id . Alternatively , You may use the below given link also. https://www.cdslindia.com/Authentication/OTP.aspx?id=O

Step 3: Visit the link you have received on your registered mail ID or mobile number or you can use the link given above also directly

Step 4: Once you click the link, the authentication process starts. The link will redirect you to the CDSL web page, where you are required to verify your PAN number or Demat account number

Step 5: After verifying the details, click on generate OTP to authorise the pledge

Step 6: You will receive an OTP on your registered mail ID and mobile number

Step 7: Enter the OTP to authenticate your request on the CDSL platform. You will receive a confirmation message for your pledging margin request, and the pledge request will take a couple of hours to be activated

Note Note: NRI client will receive OTP on email and SMS on Indian mobile number, if provided. CDSL Depository does not send SMS on international number.

Related Blogs-

What is new Pledge and repledge system for margin benefit, how it works?