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Terms of Service for pledging

  • Securities can be pledged between 8 AM and 6 PM on trading days. However, there are no restrictions on unpledging.  The collateral margin from a successful pledge request will be credited to the Zerodha account on the next trading day.
  • When using collateral margin to trade F&O, the shareholder must have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha. See Will Zerodha provide margin on liquid funds? If losses in F&O are not funded by cash, interest on the debit balance will be charged at 0.05% per day.
  • Use of collateral margins from pledging the holdings will only be allowed with a positive cash balance.
  • The cost of pledging is ₹30 + GST per instrument, irrespective of the quantity pledged. There are no charges for unpledging.
  • This pledge is being created in the name of Zerodha Broking Limited – DP ID: 1208160054378965.
  • Pledged instruments can be sold without unpledging. To learn more, see Can pledged instruments be instantly sold without placing an unpledge request?
  • If an unpledge request is submitted before 3:30 PM, the stocks will be available in the demat account for trading on the following day. For requests placed after 3:30 PM, the stocks will be available in the demat account for trading the day after.

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 Demat Debit and Pledge Instruction (DDPI), and how to activate it online and offline?