Pledging of shares in call option shorting

Yes, the pledged shares now stay in your demat account itself. If there is a delivery obligation for those shares, pledged shares will be considered for delivery. Explained here.

Just to clarify, if I pledge shares towards margin requirements on a covered call for those shares, I don’t have to unpledge if I have a delivery obligation, correct? @ShubhS9

Right, Karthik. Pledged shares will be considered towards fulfilling delivery obligation.