NSE Approved List of Securities for Pledge: Latest Guidelines (2025)

If you are someone who actively trades or invests in the stock market, you’ve probably heard of pledging your shares to get extra funds. But how do you know which shares or mutual funds are eligible for pledging? That’s where the NSE-approved list of securities for pledge comes into play. This list tells you exactly which stocks, bonds, and mutual fund units are accepted by brokers and lenders as collateral. Whether you're using this facility for margin trading or to get a loan, knowing the latest rules from NSE can help you make better financial decisions in 2025.

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What is margin pledging? Understanding the basics

Margin pledging allows you to use your existing investments, like shares, mutual funds, or ETFs, as security to get funds for trading or borrowing. Instead of selling your securities, you "pledge" them, meaning they’re marked as collateral with your broker or lender. You still remain the owner, but you can now access additional buying power or even a personal loan.

This system helps investors take advantage of opportunities in the market without losing long-term investments. Many traders use margin pledging for short-term trades, while others use it to unlock funds for urgent needs.

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Eligibility criteria for securities in the NSE pledge list

Not all listed securities are accepted for pledging. NSE has a strict selection process to decide which stocks and funds make it to the approved list. Here’s what typically qualifies:

Key eligibility criteria:

• Liquidity: Securities with high trading volume are usually eligible.
• Market capitalisation: Large and mid-cap stocks are preferred over small-cap or penny stocks.
• Price stability: Stocks with lower volatility are more likely to be accepted.
• Compliance track record: Companies that comply with SEBI and NSE regulations are prioritised.
• No regulatory flags: Securities under suspension, investigation, or delisting are automatically removed.

Keep in mind that this list is dynamic and updated frequently by NSE based on market conditions.

Haircut percentages: How do they affect your collateral value?

When you pledge securities, you do not get a loan equal to the market value of your shares. A portion is deducted as a safety buffer. This deduction is known as a haircut.

Let us say you pledge shares worth Rs. 1,00,000 and the haircut is 25%. You will receive a loan of Rs. 75,000.

Haircuts vary by:

• Type of security: Shares typically have higher haircuts (20–50%) than government bonds or blue-chip mutual funds (10–25%).
• Volatility: Stocks with frequent price swings will attract higher haircuts.
• NSE guidelines: These are revised regularly based on market risk and stock behaviour.

Understanding haircut percentages helps you estimate how much liquidity you can unlock from your portfolio.

Recent changes: NSE removes over 1,000 stocks from collateral list

In early 2025, NSE revised its pledgeable securities list and removed over 1,000 low-liquidity and high-volatility stocks. This move came as part of an effort to protect investors and brokers from collateral risk.

Many small-cap and lesser-known stocks were excluded, including those with:

• Poor compliance records
• Irregular price patterns
• Very low daily volumes

If your pledged security falls off the list, you may be asked to top up with eligible assets or repay part of your margin. Always stay updated to ensure your pledged portfolio remains valid.

 

How to access the NSE-approved securities list?

The NSE-approved list of pledgeable securities is publicly available and updated regularly. It includes stocks, mutual funds, bonds, and other instruments accepted for margin trading or loan pledging.

Here is how you can check the latest list:

1. Go to the official website of the stock exchange.
2. Navigate to the section related to market data or margin trading.
3. Look for options that mention approved or eligible securities for pledging.
4. Choose your instrument type—like equity shares, mutual funds, ETFs, or bonds.
5. Download the most recent list or document for reference.
6. Review important details like the ISIN code and margin eligibility status.

Since this list gets updated frequently, sometimes even weekly, it is a good practice to check it often, especially before initiating a pledge or margin transaction.

Want to pledge your shares or mutual funds for a loan? Bajaj Finance makes the process simple and entirely digital. Here is a quick step-by-step process:

Step 1: Visit the application page

Go to the official loan against securities page of Bajaj Finserv website to start your application.

Step 2: Select the type of security

Choose the investment you want to pledge shares, mutual funds, bonds, or insurance policies.

Step 3: Link your demat account

Securely connect your NSDL or CDSL demat account to proceed.

Step 4: View approved securities

Check which of your holdings are eligible for pledging in real-time.

Step 5: Pledge the required units

Enter the number of units you want to pledge and submit your request.

Step 6: Authorise the pledge

Complete the process by approving the transaction via OTP or NSDL/CDSL authentication.

Step 7: Receive funds

Post-verification, the approved loan amount is credited to your account usually within 24 to 48 hours*.

Get funds within 24 hours by pledging your investments online. Start your application now

Benefits of pledging securities for margin trading

Pledging is more than just borrowing; it is a strategic move. Here is why many investors prefer pledging:

Key benefits:

• Instant liquidity without disturbing your long-term investments.
• Stay invested while meeting short-term needs.
• Lower interest rates than unsecured personal loans.
• No prepayment charges with most lenders.
• Flexible top-ups as your portfolio grows.

For traders, pledging increases market exposure without selling assets. For investors, it is a way to get fast funds while keeping ownership intact.

Risks and considerations when pledging securities

While pledging offers convenience, it comes with a few risks:

Things to watch out for:

• Price volatility: If the value of your pledged asset drops, you may need to deposit additional margin.
• Interest cost: Regular interest payments are required on the borrowed amount.
• Forced sale: In case of default, the broker/lender has the right to sell your securities.
• Limited access: You can’t sell pledged securities unless you unpledge them first.

Make sure you understand the terms before pledging. It’s best used when you have a repayment plan or expect returns from other investments.

Conclusion

The NSE approved list of securities for pledge is your go-to guide for making smart investment and borrowing decisions in 2025. Whether you’re an active trader or a long-term investor in need of funds, pledging gives you the best of both worlds: liquidity without liquidation. With regular updates, changing haircut norms, and digital pledging now easier than ever, it is important to stay updated and choose a trusted lending partner.

Need liquidity without selling your investments? Check eligible securities and get a loan with Bajaj Finserv. Apply now