Margin pledge
Trading & ordersThe arrangement, in force since September 2020, under which shares offered as collateral stay in the investor’s own demat account and are pledged in favour of the broker rather than transferred to it.
In plain terms
Brought in after brokers were found misusing client securities, so the protection is real. The cost is that releasing the pledge before a sale is now your operational problem — an unreleased pledge is a short delivery even though the shares are visibly in your account.