Pledge
Trading & ordersMarking securities as collateral, typically for margin.
In plain terms
Pledged shares are encumbered, which complicates recovery if a broker fails.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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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.
Encumbrance
Regulation & taxAny charge, lien or pledge over shares that restricts the holder's free disposal of them.
In plain terms
The word SEBI uses in the disclosure. Pledges are the common case; the category is broader.
Haircut
Market basicsThe percentage deducted from the value of pledged collateral when computing available margin.
In plain terms
Pledge ₹1,00,000 with a 20% haircut and you get ₹80,000 of margin. Haircuts widen exactly when markets get volatile.
Invocation
Fundamental analysisA lender selling pledged shares in the open market after a margin call is not met.
In plain terms
The moment a promoter's personal finances become your share price problem.
Shareholding pattern
Fundamental analysisThe quarterly filing showing who owns a company — promoters, institutions, retail — and how much is pledged.
In plain terms
One page, free, filed every quarter, containing the single best early warning available on Indian mid-caps.
Registered charge
AccountingAlso called: Index of charges, Charge creation, Satisfaction of charge
A security interest created over a company’s assets in favour of a lender, recorded against that company in the public register of charges.
In plain terms
A dated, public record of who lent to which entity and what was pledged. Unsecured borrowing creates no charge, so the register is one side of the picture rather than all of it.