Why can’t some holdings be pledged?

Some holdings cannot be pledged due to specific regulations and criteria set by the exchanges. The following are common reasons why certain holdings may not be eligible for pledging:

1. T1 Holdings: Shares that are classified as T1 holdings (shares that have been purchased and are yet to be settled) cannot be pledged.
2. Demat Account: Only shares that are already in your demat account can be pledged. You cannot pledge shares that are not in your demat account.
3. Approved Securities: Only approved securities as per the list provided by the broker or exchange can be pledged. Holdings that are not listed in the approved securities may not be eligible.
4. Segmentation: Shares can only be pledged if you have the appropriate segment activated in your account, such as the equity derivatives segment (F&O).
5. Regulatory Compliance: Some securities may not meet regulatory requirements or may be subject to restrictions that prevent them from being pledged.
   For a complete list of approved securities for pledging, you can refer to the link provided by Shoonya.

Did you find it helpful?

Yes No