How to pledge shares to get collateral margin?
Pledging shares is a two-step process. The first step is to pledge the shares 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 shares. If the pledge is authorised, the margins will be available from the next trading day. 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 securities on which pledging is allowed and the haircut % on them can be found on this (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. Fractional units of Liquid BeES and mutual funds can't be pledged.
Did you know?
- F&O segment has to be active to pledge holdings. To activate the segment, see How do I activate F&O?
- Pledged holdings can be sold only after they are unpledged. A pledge request can be cancelled only if it is not processed. To know how to unpledge shares, see How do I unpledge shares?