How can I pledge shares for trading margin?

You initiate the pledge request through your broker’s app or platform, usually under a margin or collateral section, where you select the specific shares from your demat holdings you want to pledge and confirm the request. This triggers a formal pledge instruction that goes through the depository (NSDL or CDSL), and you typically need to authorise it via an OTP sent to your registered mobile number, since SEBI’s framework requires this direct authorisation from you rather than allowing the broker to pledge shares on your behalf without explicit consent each time. Once processed, usually within the same day or by the next trading session, the margin value (after the applicable haircut) becomes available in your account for trading. You check the specific haircut percentage applied to each stock you’re considering pledging, since it varies by stock volatility, and a highly volatile stock will yield proportionally less usable margin than a more stable, large-cap one of the same market value.