Margin received against pledged shares can be used only in FNO and intraday?

I have read margin received pledged shares (collateral margin) can only be used only in Intraday Equity (MIS, CO), Trading Futures and Shorting Options.

I understand this one can not use this collateral margin in Equity/cash CNC/NRML (delivery) orders but I would like to understand why?

Also why not in long options when you allow long futures? @ShubhS9 @siva

When are you going to bring margin funding using cash as collateral for equity delivery trades?

When you’re buying shares for delivery or buying options, you have to pay the payment to the other party which cannot be settled using margin received from pledged shares and can only use cash.

Whereas, when you’re taking position in Futures (Long/Short) or Shorting Options, this are leveraged positions, you aren’t paying other party anything hence you can use the collateral margin, this Exchange / Clearing Corporation blocks as guarantee.

Siva had addressed this on different thread a while ago: