2. How quickly is margin available after pledging shares?

Once the pledge authorisation is completed via the depository, CDSL/NSDL, Dhan instantly credits margin benefits and updates your account in real-time for use across various market segments.

3. Is share pledging the same as selling shares?

No. In pledging, investors only offer their shares as collateral while ownership still remains with them. However, they cannot sell those shares until the loan is repaid and the shares are unpledged.

4. Can I pledge any stock or mutual fund in my portfolio?

An investor can only pledge those stocks and funds that feature on the approved list shared by Dhan. These eligibility lists change based on market and regulatory limits and are updated regularly on the Dhan platform.

5. What if the stock value declines and I am unable to maintain the required margin?

Dhan will issue a margin call if your pledged stock falls below the required margin cover. Liquidation/unpledging and forced sale of shares may happen in case of failure to respond to recover exposures.

What is share pledging? Meaning, process, and risks explained

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Margin Trading

What is share pledging? Meaning, process, and risks explained

Margin Trading

What is share pledging? Meaning, process, and risks explained

Share pledging lets investors borrow without selling shares, but comes with margin risks and market impact. Here’s how it works and what to watch out for.