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Form guide · Source checked 21 October 2026
Pledge instructions: completed margin chain and current safeguards
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Record a margin pledge and re-pledge chain without transferring ownership or inflating collateral, and include the current pledge undertakings and invocation notice distinction.
Source checked 21 October 2026; the cited current instrument and its commencement govern this selected example.
Download and read the completed example
Separate fictional derivative client Arun Mehta, UCCAM-002, pledges 100 ordinary listed shares on 20 October 2026 for his own margin obligation. The chain is an educational instruction record, not an authenticated depository request or an actual invocation/sale.
Fictional, unsigned completed illustration. It demonstrates this form’s fields; it is not a filed return, medical opinion, official order or proof of an actual transaction.
When and how this form is used
A margin pledge preserves the regulated ownership and collateral trail; a transfer of shares into the broker’s ordinary account is not an equivalent substitute. Re-pledging the same 100 shares cannot triple the client’s collateral.
The June 2025 margin update, implemented under the August extension by 10 October 2025, provides combined client-sale release/early-pay-in and revised invocation processes. It prevents the old practice of accumulating invoked securities unsold.
The February 2026 amendment adds specific pledge undertakings, a standardized request format and invocation notification to both parties, implemented by 6 April 2026. Invocation is not automatically a completed sale; statutory notice/redemption rights require their own analysis.
The example fills the instruction and chain fields while leaving genuine authentication, authority and acceptance unexecuted. A real DP /depository format and actual CC obligations control any transaction.
The completed fields
Pledge request and available holdings
| Prescribed field / section | Completed fictional entry |
|---|---|
| Parties / demat / instruction | Pledger Arun Mehta, Example DP / CDSL , BOID[synthetic invalid]; TM Example Broker client-securities-margin-pledge account; CM Example Clearing Member; CC Example Clearing Corporation. Chain reference MP-001; date 20 October 2026. All role/account/ ISIN identifiers are synthetic, not registrations. |
| Security / quantity / balance / purpose | Illustration Listed Equity, ISIN [synthetic invalid]; holdings 500 free shares, no existing pledge. Margin pledge 100 shares, remaining free 400; no other security row. Purpose: this client’s selected exchange trades, not broker funding or another client’s obligation. |
| Value / haircut / authority | Assumed price₹1,000, gross₹1,00,000; haircut 15%, eligible₹85,000. Pledger’s genuine depository authentication/consent and pledgee confirmation required; none executed. A PoA / DDPI is optional and cannot replace the regulated pledge system or be forced as account-opening condition. |
Re-pledge chain and release
| Prescribed field / section | Completed fictional entry |
|---|---|
| Same securities / traceability | TM re-pledges the same 100 shares to CM ; CM onward to CC for the same client UCC and margin allocation. Original-client ownership and chain linkage retained; not three separately owned blocks or₹2,55,000 collateral. |
| Voluntary client sale / release | If client sells 40 pledged shares, use the operative single pledge-release/early-pay-in instruction, validated against that client’s actual CC delivery obligation. Illustrative resulting pledge 60/free 400/early-pay-in-block 40 until settlement; total 500. No delivery authority beyond the actual obligation. |
| Invocation / special branches | No invocation in this selected record. A real margin invocation follows current automated early-pay-in/trail rules. Non-exchange-traded mutual-fund units use the separate invocation-cum-redemption process; frozen/not-permitted client codes have their specific same-day-pay-in branch. Do not accumulate invoked client shares indefinitely in a broker account. |
2026 pledge safeguards and execution
| Prescribed field / section | Completed fictional entry |
|---|---|
| Required undertakings | The pledge request must include pledgee’s undertaking to give reasonable sale notice and comply with Contract Act sections 176/177; pledger and pledgee must undertake applicable Contract Act, Depositories Act, SEBI and bye-law compliance. This fictional record identifies the clauses; no actual undertaking signed. |
| Invocation notice / beneficial ownership | The depository must notify both parties on invocation and recording pledgee as beneficial owner under regulation 79(8). Invocation/registration is distinct from a sale; it does not itself remove applicable reasonable-notice and redemption rights. No universal fixed notice-day count invented. |
| Final controls / signatures | Verify eligible security, free balance, exact quantities/ ISIN , parties, own-client allocation, chain IDs and genuine authentication. Model preparer/date 20 October; pledger/pledgee signatures, DP acceptance, transaction and invocation notifications NOT EXECUTED. Actual depository standardized request format governs. |
Supporting records and reconciliation
Retain the actual records identified in each field block, approvals/authority, reporting-period reconciliation and genuine submission or delivery evidence. The fictional entries do not establish those underlying facts.
Worked calculation: Holdings 500−pledged 100=400 free. Eligible collateral 100×₹1,000×85%=₹85,000 once. On hypothetical sale 40:60 pledged+40 early-pay-in-block+400 free=500 shares.
Official source and version
Depositories Master Circular paragraphs4.13–4.14
3 June 2025 circular, paragraphs 4–5: combined release/early-pay-in and invocation processes
18 August 2025 circular: implementation extended to 10 October 2025
Download the official requirement and format pages. The named annexure/regulation governs; adjacent material may share a page. This completed PDF is an educational field transcription, not an exchange XBRL import file or executed certificate.
Use the identified reporting period and entity/transaction branch. A genuine filing must use the competent current exchange/ SEBI /depository channel. Website catalogue numbers are not legal form numbers.
Practical questions
Can I submit the sample as my own completed form?
No. Replace the fictional facts with accurate records, use the competent filing or record-keeping route described above and complete genuine signatures or certifications where required.
What makes the example specific to this form?
Record a margin pledge and re-pledge chain without transferring ownership or inflating collateral, and include the current pledge undertakings and invocation notice distinction. The URL’s form-014 is this website’s catalogue identifier, not an official SEBI statutory form number.