Releasing your pledged shares is a simple process that you can initiate online. However, you must consider a few factors, such as your loan account status, to be able to release your shares successfully. In this guide, we will show you how to release your pledged shares effortlessly so you can take full control of your financial assets.
Eligibility for releasing pledged shares
If you have pledged your shares to avail a loan, you may consider releasing them once the loan is repaid or partially closed. However, the release process is subject to certain eligibility conditions that ensure the financial agreement is honoured from both ends — yours and the lender’s.
Below are the key eligibility criteria you must meet to initiate the release of pledged shares:
- Loan repayment status: The primary condition is the repayment of the loan — either in full or the portion corresponding to the value of shares you wish to release. No release is permitted unless dues are cleared.
- Pledge margin requirements: Even after partial loan repayment, the remaining pledged shares must maintain the required margin. The lender will assess whether releasing some shares would breach this margin requirement.
- Account in good standing: Your loan account should not reflect any overdue EMIs, penalties, or default history at the time of release. Clean repayment behaviour makes you eligible for a smoother release process.
- Formal request submission: You will need to submit a formal request (typically online or through customer service) for the release of shares, specifying the number of shares and corresponding loan details.
- Verification by lender: The lender will validate your request against outstanding dues and current market value of the remaining securities before approving the release.
- Demat account status: Your demat account linked to the loan should remain active and operational to ensure a seamless transfer of released shares back to your name.
- Compliance with lender’s internal policies: Each lender may have internal norms regarding the lock-in period, release frequency, or minimum threshold of shares. These must be adhered to before shares are released.
Once all these conditions are satisfied, the lender initiates the de-pledging process and transfers the shares back to your demat account, usually within a few working days.
How to raise a release request in the portal: Step-by-step
Follow these step-by-step instructions to raise a release request seamlessly through the portal for quick processing.
Step 1: Sign into My Account
The first step to releasing your pledged shares is by signing into My Account on our app/website. Click on the "Sign-in" button, insert your registered mobile number, and submit the OTP provided. If you are on the app, navigate to the account section after logging in.
Step 2: Verify your details
After signing into your account, you will need to verify your identity with your date of birth. Once done, click on the "Proceed" button.
Step 3: Select your loan account
Under the "My Relations" section, select the loan account that is linked to your pledged shares.
Step 4: Release securities
Under the "Quick Actions" section, click on the "Release Securities" option. As the next step, you will be prompted to select the shares you wish to release.
Step 5: Verify your details
After choosing the shares you want to release, you will receive a one-time password (OTP) on your registered mobile number. Enter the OTP, then click on "Proceed" to finalise the process.
Step 6: Raise a request to release your pledged shares
Once you have verified your details, you can now raise a request to release your pledged shares. Simply follow the on-screen instructions to complete the process.
It is important to note that you can only release securities if your loan account is not under margin shortfall. This happens when the value of your securities falls below a certain limit, and you have surplus funds available to withdraw.
In conclusion, releasing your pledged shares is easy if you follow these simple steps. Make sure to take note of the necessary requirements such as your loan account status and available funds before initiating the release process.
