Pledging Stocks as Collateral: A Step-by-Step Guide

As per the revised SEBI guidelines, pledging your stocks is mandatory for them to be used as collateral for trading. Here's how you can complete the pledging process:

Step 1: Initiate Pledge Request

 Via Trading Platform:

1. Log in to your web trading platform.
2. Navigate to the Back Office section and: Select Add New Margin Pledge Request for F&O trading.
3. Watch the instructional video for detailed guidance on pledging stocks via the platform.

Via Email: Alternatively, email the list of stocks you wish to pledge and specify the segment (F&O). Submit this request by raising a ticket.

Step 2: Pledge Request Processing

• Timing: Requests submitted before 5 PM will be processed by the end of the day (EOD).
• Confirmation: You will receive an SMS from NSDL with a link for pledge confirmation, along with an email to your registered address.

Step 3: Approve the Pledge

Access the NSDL Page:

• Click on the link provided in the SMS or email.
• Enter your PAN number when prompted.

Confirm Your Pledge:

1. Review the list of stocks and quantities you requested to pledge.
2. Select the checkboxes for the stocks you wish to pledge and confirm your selection.

OTP Verification:

• You will receive an OTP via SMS to your registered mobile number.
• Enter the OTP on the NSDL page to finalize the pledge.

Step 4: Margin Availability

• T+1 Margin Provision: Margins will be provided against the pledged stocks starting from the next trading day (T+1).
• Pledging Fee: A fee for pledging will be applied as per the rate card.  

Selling Pledged Stocks

Request for Release: Pledged stocks will not be visible in your trading terminal. To sell these stocks, submit an Unpledge Request by Raising a Ticket here.

Processing Details:

1. If the unpledge request is received by 1 PM on a trading day, it will be processed the same day, and the free balance will be available for selling in the next trading session.
2. Ensure sufficient margin for existing open positions before processing the unpledge request.
3. Requests will be rejected if there is a margin requirement on the requested stocks.

Important Points to Note While Pledging Stocks  

1. Pledge Request Timing:
   • All online pledge requests must be submitted before 5 PM on working days.
   • Requests made after 5 PM will be processed the next day.
   • Unpledge Request Timing: Submit unpledge requests before 1 PM on working days. Requests made after 1 PM will be processed the next trading day.
2. Confirmation Process:
   • After submitting a pledge request, confirm it using the link provided in the SMS or email from NSDL.
   • If you do not receive the link, use the common NSDL pledge link for pledge confirmation.
   • Confirm all pledge requests before 8 PM on the same day. Late acceptance of pledge will result in margin benefits not being available for the next trading day.
3.  Non-Processing Days: Pledge requests made on Saturdays and Sundays will not be processed. Plan your pledging activities accordingly.

5. Cash Component Ratio: A cash component requirement of 1:1 will apply.

Note: Cash-equivalent collateral will not be treated as cash component and will be considered part of the non-cash component only.