Your Vested account is moving to a zero-leverage margin account: what it means for your

Vested is updating the account type for all investors on our platform. Over the coming weeks, accounts held with Vested will move from cash accounts to zero-leverage margin accounts. New accounts completing KYC will open under this type as well.

We know that the word “margin” can sound like borrowing, debt, or added risk. This post is here to explain exactly what is changing, what is not, and why. The short answer: this is a change to how your account is classified, not to how it works or how you use it.

The key points

• Your account type is changing from cash to zero-leverage margin.
• “Zero-leverage” means you still cannot borrow funds to trade. This stays fully compliant with LRS guidelines.
• There is no additional cost, and it does not add risk or debt of any kind.
• Your app, your screens, and your holdings do not change. Deposits and withdrawals work exactly as before.
• The new account type removes three limitations that exist on cash accounts: day-trading caps, good-faith violations, and settlement delays on your buying power.
• When it is your account’s turn, you will see a prompt on login. Tap Agree and Continue to confirm.

What is a zero-leverage margin account?

A margin account is usually associated with borrowing money from a broker to trade larger positions than your cash allows. A zero-leverage margin account is specifically not that.

Under India’s Liberalised Remittance Scheme (LRS), leverage on overseas investments is not permitted, and that does not change here. You will not be able to borrow funds to place trades. The money in your account remains your own settled capital.

The best way to think about it is a change to the plumbing behind your account, while the taps you use every day continue to work exactly as before.

Why are we making this change

This account type aligns with our updated operating model, and it is required for continued access to your Vested account under that model. There is no cost to you.

Alongside meeting that requirement, the change happens to remove a few limitations that cash accounts carry, which we explain below.

What changes for you

The new account type removes three constraints that exist on cash accounts.

1. Unlimited day trading

Day trading simply means buying and selling the same stock within the same trading day. In a cash account, how often you can do this is capped by settlement. Each time you sell, the proceeds take one business day to become available, which limits how many round-trip trades you can make before you run out of settled funds.

Following revised Pattern Day Trader (PDT) guidelines, a zero-leverage margin account effectively removes this cap. You can buy and sell the same position multiple times in a day without hitting a limit.

2. No good-faith violations

This one is worth understanding, because it trips up a lot of active traders.

When you sell a stock, the cash from that sale takes one business day (T+1) to settle. In a cash account, if you take those unsettled proceeds, buy another stock, and then sell it before your first sale has settled, that counts as a “good-faith violation.” Accumulate a few of these and your account can be restricted to trading only with fully settled cash for up to 90 days.

In a margin account, good-faith violations do not apply at all. You can move in and out of positions without keeping a mental settlement calendar.

3. Faster access to buying power

This account type is needed to support bulk funding, which would enable faster remittances and access to funds in your Vested account.

What stays exactly the same

• Your account interface does not change. The app, your screens, and the way you use Vested day to day all stay exactly as they are. There is nothing new to learn.
• Deposits and withdrawals work identically, because these accounts are of type “Margin Cash.” The concepts you already use to fund your account and take money out remain unchanged.
• Your holdings and portfolio are unaffected. Nothing about what you own changes.
• Your LRS compliance is unaffected. No leverage, no borrowing, no change to how your investments sit under LRS.

What you are agreeing to

As part of this change, you will accept the Margin Risk Disclosure Statement in addition to your existing DriveWealth disclosures. We have added it to the Vested Legal Hub so you can review it any time.

How and when it happens

We are rolling this out in phases. When your account is included in the next available migration batch, you will receive an email with your scheduled conversion date. These are usually processed on Fridays.

One limitation applies on your conversion day: you will not be able to place extended-hours eligible orders during that day’s after-hours session, or during the next business day’s pre-market session. Regular market-hours trading continues as normal.

What you need to do

When it is your account’s turn, log in and tap Agree and Continue on the prompt you see.

If you need more time, you can choose to skip for now, and we will remind you at your next login. You can defer this a limited number of times, but the transition is required to keep accessing your account and its features. Once you have confirmed, no further action is needed from your side.