Margin pledge
& buyback.
Pledge the securities already sitting in your demat account to receive trading margin — without the shares ever leaving it.
Collateral value, after the haircut.
Mark-to-market losses still have to be paid in cash — pledged stock cannot settle them.
- Holding Value
- ₹10,00,000
- Haircut
- ₹2,00,000
An illustration on the figures above, not a quote and not advice.
What pledging actually does
Margin pledge lets you pledge demat securities — shares, ETFs, mutual funds — in favour of the broker to receive trading margin against them. The shares stay in your own demat account throughout; only a lien is created.
A haircut is applied to the value, set by SEBI’s VAR-based margin rules, and the margin is released only once the clearing corporation confirms the re-pledge.
Where you create the pledge
Pledge requests are raised on the Labdhi pledge portal and authorised with the CDSL OTP sent to your registered mobile and email.
Our own calculator, in build
We are bringing the margin calculator in-house so it lives on this site rather than a separate login. It is finished except for the daily exchange risk file, and it will not show a figure until that is wired in and checked against the one above.
The rules that catch people out
Pledging is straightforward. These five points are where the questions come from.
Every pledge is authenticated by an OTP sent by CDSL to your registered mobile or email. No one can pledge on your behalf without it.
There is no transfer out of your demat account. The securities stay in your BO account with a pledge marked against them.
Bonus, split and dividend on pledged holdings are credited directly to your BO account, exactly as they would be otherwise.
The benefit is granted only once the collateral re-pledge is received from the clearing corporation — not the moment you submit the request.
Daily mark-to-market losses must be settled in cash. They cannot be met out of pledged collateral.
Why pledged shares need cash beside them.
Pledged shares count towards F&O margin after a haircut — but only up to the cash in the account, because at least half of the margin has to be cash or cash equivalents.
- Cash
- ₹2,00,000
- Collateral after haircut, counted
- ₹2,00,000
- Collateral not usable yet
- ₹6,00,000
At least half of F&O margin has to be cash or cash equivalents, so your pledged shares count only up to the cash beside them. Adding ₹6,00,000 more cash would let all of the collateral work. Mark-to-market losses are always settled in cash.
Is tendering worth it?
A buyback pays above the market, but only on the shares the company accepts. Put in the offer and your holding to see the premium, what you would receive and the tax.
- Shares accepted
- 30
- Paid for them
- ₹1,35,000
- Over selling them in the market today
- ₹21,000
- Capital gain on the accepted shares
- ₹39,000
- Tax on it at 12.5%, before any exemption
- ₹4,875
For buybacks from 1 April 2026, shareholders are taxed on the gain as capital gains — long-term at 12.5%, with the ₹1.25 lakh yearly exemption on listed-equity long-term gains. Promoters pay more. The company sets the acceptance ratio, and shares not accepted come back to you — the market price can move after the offer closes.
Margin Pledge, step by step.
- 1Raise the request
Select the holdings you want to pledge on the Labdhi pledge portal.
- 2Authorise with the CDSL OTP
CDSL sends a one-time password to the mobile and email registered against your demat account. Nobody can pledge on your behalf without it.
- 3Wait for the re-pledge
We re-pledge the collateral to the clearing corporation. Margin is credited only once that confirmation comes back.
- 4Trade against the margin
The collateral value, less the applicable haircut, shows as margin. Mark-to-market losses still have to be paid in cash.
Understand Margin Pledge properly.
How it works, the types, both sides and the comparisons — for when you want the full picture.
What pledged securities give you
Pledged collateral counts toward the margin required to hold futures and options positions.
Use the value of what you already hold to fund intraday positions in the cash segment.
A general margin line against approved holdings, released as you unpledge.
What can be pledged
Eligibility is set by the approved collateral list, not by preference.
Equity shares that appear on the broker’s approved collateral list.
Exchange-traded funds on the same approved list.
Mainly debt and liquid schemes, where the scheme is approved as collateral.
Buyback — tendering your shares
When a company buys its own shares back, usually above the market price, holders can offer theirs through the tender route. It is optional, and it is a separate process from pledging.
The shares must be in your demat account on the record date the company sets.
We notify you by email and SMS once the offer opens, with the dates and the price.
Submit the shares through the tender route in your trading or demat portal.
Accepted shares are debited and the money is credited. Anything not accepted comes back to you.
What makes shares eligible
| Condition | What it means |
|---|---|
| Unencumbered shares | Shares must be free of any lien in your demat account to be eligible for tendering. |
| No pledged shares | Pledged or locked-in shares cannot be tendered under any circumstances. |
| Account verification | The shares must sit in the same DP account on the record date. |
Acceptance is proportionate — a buyback can be oversubscribed, and there is no assurance that every share tendered is accepted.
Margin Pledge, answered.
No. The securities remain in your own BO account and only a pledge is marked against them. There is no movement of shares out of your account.
Yes. All corporate actions — bonus, split and dividend — are credited directly to your BO account.
Through CDSL’s OTP process, sent to the mobile number or email registered with your depository participant.
Margin benefit is granted only after the collateral re-pledge is received from the clearing corporation, which happens on the depository’s cycle rather than instantly.
No. Daily MTM losses must be settled in cash.
No. Shares must be unencumbered on the record date. Pledged or locked-in shares are not eligible.
Collateral, without selling anything.
Pledge from the holdings already in your demat account. Authentication runs through CDSL.