What should the client do if he/she wants to pledge electronic securities?
The procedure is as follows: • Both, the client (pledgor) as well as the lender (pledgee) must have demat accounts; • Client has to initiate the pledge by submitting to his/her branch DP the details of the securities to be pledged in a standard format; • The pledgee has to confirm the request through his/her DP; • Once this is done, the securities are pledged. • All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.
