Pledged securities cannot be sold while they are pledged. To unpledge a security, your LTV must be within the permissible limit of 45%.
Partial repayment and partial unpledge
If you have pledged multiple securities against a loan, you can make a partial repayment and unpledge securities, subject to two conditions:
- The outstanding loan must not exceed 45% of the value of the securities that remain pledged.
- The quantity you can unpledge depends on the amount disbursed against that security. You can unpledge the entire quantity of a stock only if your repayment covers the full amount disbursed against it. Otherwise only a proportionate quantity can be unpledged.
Example
You have pledged stock A and stock B and taken a loan of Rs. 1,00,000. If you repay Rs. 55,000, you can unpledge all of stock A only if the amount disbursed against stock A was Rs. 55,000 or less. If it was more, only part of stock A can be unpledged. Either way, the remaining outstanding of Rs. 45,000 must stay within 45% of the value of the securities that remain pledged.
Two ways to bring your LTV within limits
Make an additional payment
- Log in to Zerodha Capital and go to the Dashboard section.
- Select Make payment and complete the payment.
- Once your LTV is within limits, go to the Pledges section and unpledge your securities.
Pledge additional securities
- Log in and pledge additional securities.
- Complete the e-sign process and select I do not want disbursement to the bank account to lower your LTV.
- Once your LTV is within the permissible limit, go to the Pledges section and unpledge the required securities.
Securities are unpledged within 24 working hours, after which you can sell them.