The term “encumbrance” includes all types of pledges and liens. Pledging simply means taking loans against the shares that one holds. pledged shares would remain in the demat account of the pawnor only, However, the pawnor would not be able to trade the pledged securities. For pledging the shares person has to initiate a request using the trading terminal

Answer given by Shubhamm Sir at 10-Oct-2022 03:58 PM