About portfolio stock pledging for margin

Zerodha
1

Hi

I have received following advisory from NSE after the recent news about Karvy.

“Please note that securities provided by you towards margin are not permitted to be pledged by your Stock Broker for raising funds.”

Please confirm that PoA which is given to Zerodha while account opening, doesn’t permit Zerodha to pledge my share for raising fund?

2

No, the kind of pledging being referred to here is where a broker pledges your stocks with a NBFC/Bank and raises funds. This is unlike what we do at Zerodha, where you move your stocks and they get pledged with NSE clearing corporation in line with these Exchange regulations.

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