Can pledged instruments be instantly sold without placing an unpledge request? (2024)

Yes, the pledged holdings can be sold without placing an unpledge request by placing a sell order on Kite using CNC product type. To learn more, visit zerodha.com/z-connect/tradezerodha/kite/instantly-sell-pledged-stocks-on-kite.

The collateral margin will be reduced to the extent of the shares sold. Once the order has been executed, 80% of the sale credit is received in the account, similar to the sale of free holdings. The shares will be sold directly upon placing a sell order if the client has already submitted a DDPI/POA. However, if the DDPI/POA is not submitted, the sell transaction must be authorised using the CDSL T-PIN. To learn more, see What is Demat Debit and Pledge Instruction (DDPI)?

However, cash equivalents and mutual funds cannot be sold without placing the unpledge request via Console. Zerodha is working on allowing pledged cash equivalents securities to be sold instantly. Selling pledged mutual funds instantly will not be allowed since the sale proceeds are directly credited to the client's primary bank account. To learn more about unpledging, see How to unpledge instruments?

Did you know? The P&L on Kite may not be updated for shares that are pledged. Refer to the P&L on Console.