The shares in the overdraft account are revalued everyday. If the value of your shares drop, the eligible limit of your overdraft account also drops, (revised collateral value x LTV%). If the utilized amount is more than the revised eligible limit, the difference between the eligible limit and the utilized amount is considered to be overdue. In such cases a demand is made asking the borrower to clear the overdue amount either by making payment towards the overdue amount or pledging additional shares. This is known as a margin call. The borrower needs to clear the overdues in stipulated time as per below table. If their value increases, your eligible limit automatically increases and if utilised amount is less than revised eligible limit then your account will not have overdue amount.

Example: Arun has pledged shares of worth Rs.10 lakhs and has created an OD account with eligible loan limit of Rs.4.5 lakhs (45% of 10 lakhs)[Assuming that the pledged shares have an applicable LTV of 45%]. Arun has utilized this entire limit by withdrawing Rs.4.5 lakh. If the value of the pledged shares drops to Rs.9.5 Lakhs due to market volatility. The eligible limit is revised to Rs.4,27,500 (45% of 9.5 lakhs). Since the utilized amount is more than the eligible amount, Arun will receive a margin call of Rs.22,500 (4,50,000-4,27,500). Since the utilized amount falls within the initial range (45 to 50%) as shown in the table below, he has a grace period of 75 days to clear the overdue amount in his loan account.

Sr. No	LTV	No. of days to regulate
1.	>45%	75 days
2.	>50%	7 days
3.	>55%	5 days
4.	>60%	3 days
5.	>65%	1 day

Shares can be depledged online partially or completely.

1) For partial shares depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click security withdrawal.
• - Select loan account & application number under which securities are pledged.
• - Select the shares and number of shares to depledge.
• - Click calculate to check revised collateral value, revised available limit & revised total limit.
• - Verify via OTP authentication. Your request is submitted.

Your request will be reviewed and processed accordingly. The shares will be released within 24 working hours.

2) Complete shares withdrawal can be only done during loan foreclosure.

For complete shares depledging follow below steps

• - Login to mobile app or web.
• - Go to transaction tab and click foreclosure.
• - Select loan account to foreclose.
• - Verify via OTP authentication.
• - You will receive closure simulation letter on registered email.
• - Check ‘Total amount receivable’ field & clear it the same day before 12.00 am (Night).
• - Write to mcare@miraeassetfin.com once total amount receivable is paid. If total amount receivable is zero, no further action is needed.

Your request will be reviewed and processed accordingly within 48 working hours and sent to NSDL for depledging. NSDL will release the shares within 5 working days. If total receivable amount is not cleared the same day your foreclosure request will be closed, and loan will remain active.

Note: Foreclosure requests will not be accepted between the last working day of the month to 3rd working day of the next month due to monthly interest debit activity.

In case of interest bounce, the entire interest amount and other charges become overdue. The borrower will be requested to make overdue payment using the Pay Now facility. If the borrower fails to make overdue payment within 74 days, Mirae Asset Financial Services reserves the right to invoke/ sell the underlying shares to the extent of overdue amount and recover.

The account can also enter in overdue state if the value of shares drop and the utilized amount is more than the revised eligible limit. The difference between the utilized amount and the revised eligible limit in such case becomes overdue.

You may deposit additional cash equivalent to the overdue amount or deposit additional shares via top-up. If pledged collateral value increases again the account is automatically regularized.

You may check the list of banks facilitating e-mandate process here https://www.npci.org.in/PDF/nach/live-members-e-mandates/Live-Banks-in-API-E-Mandate.pdf

Shares value changes on a daily basis. Since the eligible limit of the loan account is dependent on the underlying collateral value (Eligible limit = collateral value x LTV%), the eligible limit of the loan account also changes as per change in collateral value. This is known as revaluation and Share price as on previous day’s closing is considered to calculate collateral value.

Example: Arun has availed loan against shares by pledging equity shares worth Rs 10 lakhs. The eligible limit of his account is Rs 4.5 lakhs (10 lakhs x 45% LTV). If the value of underlying shares drop to 9.5 lakhs, the revised eligible limit will drop to 4.05 lakhs (9.5 lakhs x 45% LTV).

Yes, pledging of shares is safe. The pledging of shares happens at NSDL which is registered with SEBI with proper authentication.

Mirae Asset Financial Services has the authority to sell your shares under specific circumstances. This typically occurs in situations where regulatory requirements or legal obligations necessitate the sale of these funds.

If the overdue amount due to one of the below reasons is not repaid in the stipulated time as per the agreed terms and conditions, Mirae Asset Financial Services has the authority to sell your shares

• - Failed interest payment or
• - Drop in value of your shares where utilization is more than eligible limit or
• - On maturity where the outstanding amount is not repaid

This action is taken as a last resort to recover the outstanding amount.

Your withdrawal request may take up to 4 working hours to process. Any request received after 5 pm and on a non-working day will be processed on the next working day.