·
DEMAT
securities (all securities other than government securities) can be
pledged and
the beneficial owner can be able to get a higher loan amount, with
reduced
margins and with lower rate of interest.
·
For
pledging securities the pledgor and the pledgee must have beneficial
owner
accounts at the CSDL, the depository participants may be the same or
different
under CSDL.
·
Pledgor
has to fill up a PLEDGE/UNPLEDGE
REQUEST FORM (PRF),
the
pledgee may countersign the PRF.
·
One
copy of the PRF should be given to the DEPOSITORY PARTICIPANT and
second to the
pledgee.