What is pledging? How can I pledge my holdings on Share India?

Pledging allows investors to borrow funds against their existing securities, providing additional liquidity for trading or other financial needs. Instead of selling stocks, traders can pledge them as collateral and receive a margin loan, ensuring that their long-term investments remain intact.

How to Pledge Your Holdings on Share India?

Pledging your holdings on the Share India platform is a simple and user-friendly process. Follow these steps:

Step 1: On the main dashboard, locate and click on ‘Books.’

Step 2: Under ‘Books,’ click on ‘Holdings’ to view the stocks available in your Demat account.

Step 3: Just next to ‘Symbol,’ you’ll find a hand icon that represents the pledging option.

Step 4: Select the hand icon. Enter the symbol and quantity of shares you want to pledge. You will see the margin available against your pledged shares.

Step 6: Once you’ve selected the stocks and quantities, click ‘Submit’ to complete the pledging request.

Pro Tip: Pledging securities for collateral margin can provide significant benefits, such as increased liquidity and enhanced trading capabilities. However, it is crucial to understand the associated risks, including the potential for forced liquidation if the value of pledged securities declines.