Pledge:

 

Pledge enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares.

A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue to be reflected in the DP account of the clients (pledgor) but the concerned securities are "blocked" and cannot be used for any transactions. As and when the pledge is to be removed, based on confirmations received from both the pledgor and the pledgee, the blocked securities will be released to "Free Balance" of the account holder.

A very big advantage of using pledges in the electronic mode is that the securities continue to be in your account and therefore all benefits--viz Dividend, Bonus and Rights--accrue to the holder, i.e you and not the bank (pledge).