How to pledge securities to get collateral margin?
Pledging securities involves two necessary steps. Firstly, the pledge request must be submitted on Console. Secondly, the pledge must be authorised on the CDSL portal before 7 PM. Failing to authorize the pledge by 7 PM will result in the unavailability of margins for the securities. However, if the pledge is authorized, margins become available from the next trading day. To learn more about pledging, see What is pledging and how does it work?
To pledge shares on Console, follow these steps:
- Click on Portfolio and then on Holdings.
- Click on Options.
- Click on Pledge for margin.
- Agree to the terms of service for pledging.
- Enter the Quantity to be pledged.
- Click on Submit.
Zerodha processes pledge requests at 2:00 PM and 5:00 PM only on days when the equity market is open. The list of approved instruments that can be pledged for margins and the applicable haircut % can be found in this list (DOC).
Authorising the pledge request on CDSL.
- Check the registered email ID or mobile number for the CDSL’s notification.
- Log in to cdslindia.com/Authentication/OTP.aspx using PAN.
- Click on the checkbox with the pledge details.
- Click on Generate OTP.
- Enter the OTP and click on Submit.
The cost of pledging is ₹30 + GST per instrument, irrespective of the quantity pledged. There are no charges for unpledging.
Did you know?
- The F&O segment has to be active to pledge holdings. To learn more, see How to activate F&O?
- Fractional units of both Liquid BeES and mutual funds cannot be pledged. To learn more, see What is a fractional share?
- Pending pledge requests can be cancelled.
- Pledged shares can be sold without unpledging. To learn how to sell them, see Can pledged instruments be instantly sold without placing an unpledge request?
- Pledged stocks will be considered for physical delivery obligations if stock F&O contracts expire In The Money (ITM). To learn more about physical delivery, see What is Zerodha's policy on the physical settlement of equity derivatives on expiry? Clients must authorise the sale of securities using CDSL Tpin if they have not submitted the Power Of Attorney (POA) or Demat Debit and Pledge Instruction (DDPI). To learn more, see What is Power of Attorney (POA)?