(PAN compulsory for all demat accounts)

Demat holders who do not wish to sell their shares can avail loan against their holdings from any of the Saraswat Bank branches or from any other bank by pledge or lien against the shares.

There are two parties involved under pledge, pledgor (borrower) and pledgee (lender). The pledgor and pledgee are required to initiate creation and confirmation of Pledge by submitting Annexure W.

Where the DP of the pledgor and the pledgee is different, pledgee's acceptance or rejection is communicated electronically to the pledgor's DP.

Once the loan is repaid, the securities pledged can be released either through Unilateral or Normal pledge.

Under Unilateral option, the pledgee releases the pledge against the shares and request from the pledgor is not required.

Under Normal option :

  1. The pledgor is required to initiate closure request to his DP. The pledged status will change to free balance once the pledgee confirms the repayment of the loan and confirms closure of pledge through their DP.
  2. Where the pledgor has defaulted in the repayment of loan, the pledgee may invoke the pledge in its favor.
  3. The process of creation and closure of pledge is simplified and expeditiously done as the client maintains a Depository account.
  4. Inspite of the shares being in the pledged status, the beneficiary will be entitled to corporate benefits offered by the companies from time to time.

Please contact us at user.demat@saraswatbank.com at Tel- 23480039-41