Pledging mutual funds is a two-step process. The first step is to pledge the mutual funds on Console, and the second step is to authorise the pledge on Central Depository Services Limited (CDSL) portal by 7 PM. If the pledge is not authorised by 7 PM, margins will not be provided against the pledged mutual funds. If the pledge is authorised, the margins will be available from the next trading day. The process is as follows:

Pledging mutual funds on Console

1. Log in to console.zerodha.com.
2. Click on Portfolio and then on Holdings from the drop-down menu.
3. Click on Options.
4. Click on Pledge for margin from the drop-down menu.
5. Enter the quantity to be pledged.
6. 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 securities on which pledging is allowed and the haircut % on them can be found on this (DOC).

Authorising the pledge request on CDSL

1. Check the registered email ID or mobile number for the CDSL’s notification.
2. Log in to cdslindia.com/Authentication/OTP.aspx using PAN.
3. Click on the checkbox with the pledge details.
4. Click on Generate OTP.
5. 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?

• F&O segment has to be active to pledge holdings. To activate the segment, see How do I activate F&O?
• Fractional units of both Liquid BeES and mutual funds cannot be pledged. To learn more, see What is a fractional share?
  
• Pledged mutual funds can be sold only after they are unpledged. A pledge request can be cancelled only if it is not processed. To learn how to unpledge instruments, see How do I unpledge shares?