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Why am I unable to pledge my holdings on Zerodha?

You will not be able to pledge your holdings if -

  • Stocks that are not present in the approved list can't be pledged.
  • Stocks are not settled in your demat account. T1 holdings can't be pledged. You'll have to wait until they are settled (T+2 days) to pledge them.
  • Member-wise limit for your security is reached - The total quantity of each approved security that can be pledged is limited at the trading member level by the clearing corporation. You will not be able to pledge your holding if the overall maximum pledge limit has been reached for your stock, ETF or mutual fund. In such cases, you'll get the below message on Console when you try to pledge.

  • The derivative segment isn't active - You can pledge your holdings only if you have the equity derivatives segment (F&O) activated in your account. You can activate the F&O segment for your account on Console. You'll get the below message in case you try to pledge securities when the derivatives segment isn't active for your account.

  • The Mutual Fund scheme is not accepted by the clearing corporation - You can pledge your mutual fund holdings only if it is accepted by the Clearing Corporation. You can check the list of all mutual fund ISINs which the Clearing Corporation (NSE Clearing Ltd) accepts on this sheet .
  • If the stock’s VAR is 100% : You cannot pledge stocks with a VAR of 100%. As these stocks are risky, we will not be providing any margin. You can identify these stocks with a 100% haircut asked for in this sheet . Also, it is essential to note that if you have pledged a stock for collateral and VAR reaches 100% after the stock was pledged, you cannot pledge the additional shares.

Example Scenario

Assume you have 100 shares of company ‘A’ and pledged 50 of them. Following if the VAR of the company reaches the threshold of 100%, you will not be able to pledge the additional 50 quantities.

  • Pledge requests for securities under the lockin period will be rejected.
  • A partial quantity of mutual funds schemes and ETFs cannot be pledged as pledge requests can be placed only in multiples of 1. See What is a fractional share?

Note :

1. The member-wise limit & segment status restrictions are not applicable if you are pledging your stocks/MFs for availing a loan against securities from Zerodha Capital .

2. Regular plans of some mutual fund schemes are accepted as collateral by the Clearing Corporation while direct plans of the same scheme are not. Learn more .