What is a margin pledge in simple words?

Margin pledge is a facility that allows you to use your shares as collateral to get trading margin from your broker without selling them.

Does ownership of shares change after pledging?

No. After pledging, the share ownership of the shares remains with you. The shares are only marked as pledged in your demat account.

Is the margin pledge safe?

e system is regulated by the Securities and Exchange Board of India (SEBI) and requires OTP-based authorisation from the investor.

What is a haircut in a margin pledge?

Haircut is the percentage deduction applied to the value of pledged shares to account for market risk. For example, if the haircut is 20%, you will receive ₹80 margin for every ₹100 worth of pledged shares.

Are there charges for margin pledge?

Yes. Brokers usually charge pledge and unpledge fees per ISIN. Charges vary depending on the broker. 👉🏻 List of Stocks with margin pledge benefit 👉🏻 List of Mutual Funds with margin pledge benefit 👉🏻 List of ETFs and Bonds with margin pledge benefit 👉🏻 List of G-Sec and TBs with margin pledge benefit