Hi,
If I pledge security for exchange of margin, can I withdraw that amount as cash into my bank account ?
When you pledge shares, you get margins, not cash.
Margin ≠ Cash
Hence you can’t withdraw.
Okay but promoters often pledge their shares to get loans. Why is it different in Zerodha ?
If you want to pledge shares to get cash, you’ll have to pledge these shares to a Bank/NBFC who is willing to give you a loan against such shares.