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Pledge and unpledge

Pledge locks demat shares as collateral in the depository, and unpledge releases them back to free holdings.

Pledge and unpledge are depository mechanics that move securities between free and locked holdings.

OTP or eDIS-style authorisations are commonly required to create or release pledges.

Only free holdings can usually be sold as ordinary delivery without first unpledging.

Using pledged securities as trading margin collateral is covered under margin pledge.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.