Zerodha (Flat Rs 20 Per Trade)
Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
Pledge invocation allows lenders to take over pledged securities if investors default, with depository fees applicable for the transaction.
Pledge invocation happens when the borrower defaults on repayment or margin obligations. The lender (bank/broker) invokes the pledge, gaining rights over the pledged securities. The pledged shares are then transferred to the lender’s account, who may sell them to recover dues. Depositories levy a fee for invocation, charged to the investor or broker depending on agreement.
Key Points:
Triggered when borrower defaults.
Lender gains control of pledged securities.
Shares transferred to lender’s Demat account.
Depository charges apply.
Protects lenders from loss.
Answered on
