Instantly sell pledged stocks on Kite

February 16, 2023

We’re glad to announce that we’ve finally launched the instant sale of pledged stocks feature on Kite, which has been one of our clients’ most requested features for several years. This was delayed due to system limitations, but we are now live.

The previous process for selling pledged stocks was to first unpledge them. An unpledge request must be submitted on Console before 3:30 PM. After the request is processed, the stocks would show up to trade under Kite holdings as free holdings on the next trading day. This process can be inconvenient for clients who want to sell their pledged shares instantly.

To facilitate instant sale of pledged stocks, we recently started showing the pledged stock along with free holdings on Kite holdings page. Pledged stock quantity highlighted by a P as shown here.

We have now enabled selling of pledged stocks instantly. Funds from sale can be used for purchasing other securities, trading F&O, etc. Simply place a normal sell CNC order for the pledged + free holdings quantity. When you place a sell order for pledged quantity, the collateral margin given for the pledged stocks in your account will decrease, and when the order is executed, you will receive 80% of the sale credit to your account, just like any other sale of free holdings.

If you continue to hold any F&O positions, it could lead to margin shortfall in the account, which might lead to our risk management team squaring off positions. To learn more, see Why was the position squared off after the pledged holdings were sold?

The reason why there can be a margin shortfall is because collateral margin provided for a stock can be up to 90% of the pledged value of the stock. Selling the stock will give you 80% on the trade day which can lead to lesser margins in the account.

Did you know?

  • When a sale trade is executed on a stock that has both pledged and free quantity, the pledged quantity is reduced first, followed by the free quantity. However, at the end of the day, any sale obligation will be fulfilled first with the free quantity. To learn more, see Why is the collateral margin reduced when the holdings are sold?
  • You can continue to unpledge stocks on Console. They will be moved to your free holdings on the next day.
  • Pledged stocks cannot be sold in the auction and post-market session.
  • Cash equivalent pledged securities like Liquidbees, and Gsecs cannot be sold instantly.
  • If you buy back the pledged quantities that you sold on the same day, the pledged quantity will be reinstated, and the collateral margin will be immediately added back to your account.
  • If you are new to pledging and want to know how to pledge securities in Zerodha, see How to pledge shares to get collateral margin? To know how to unpledge, see How to unpledge shares?
Team Zerodha

India's largest retail brokerage


  1. Kartik R says:

    This is a great change guys, will help to overcome some of the inherent limitations

    • Devang says:

      Great ! But need this more for Liquid bees ! why this is not supported for liquid bees ? Liquid Bees are not liquid due to this …

      • Shubham says:

        Hi Devang, we’re working on making instant selling available for pledged Liquid Bees. We’ll keep you posted.

        • hitesh says:

          Please confirm if we can instantly sell pledged liquid bees also?

          • Shruthi says:

            Hi Hitesh, not yet. We’re working on making instant selling available for pledged Liquid Bees. We’ll keep you posted.

            • Sushil says:

              Any progress on making instant selling available for pledged Liquid Bees?

              • Shubham says:

                We’re working on it, Sushil. We’ll let you know once we’re live.

                • Shashi Rekha says:

                  Hi, what about ICICILIQ? It’s also a liquid instrument. I put surplus cash there in anticipation of covering MTM losses. Right now I don’t pledge it. But can I do so and sell instantly when needed? If not, please consider adding this security as well since it is quite stable at 1000 rs always. Thanks in advance 🙂

                  • Shubham says:

                    Hi Shashi, if the Liquid ETF isn’t pledged. You can sell it whenever you want. Btw, do note, as per SEBI guidelines, when you sell holdings, you only get 80% of the sale credit on the same day, the remaining 20% will be avaialbe form the next day.

                    • Shashi says:

                      I do understand 80-20. But I want to be able to pledge ICICILIQ (for cash collateral), and when I need to cover some MTM loss, be able to sell ICICILIQ without unpledging so I can use the 80% to cover losses. Please work on this as ICICILIQ is quite stable instrument.

                    • Shruthi says:

                      Hi Shashi, ICICILIQ is cash equivalent, so it cannot be sold without placing the unpledge request via Console. However, we are working on allowing pledged cash equivalent securities to be sold instantly. Will keep you posted.

                    • Shubham says:

                      Instant selling of pledged cash collateral securities will be available soon, Shashi.

    • Krishna says:

      Why not pledged mutual funds.. Instantly sold… Please arrange for it…

  2. Arvinder Kaur says:

    Great change….thanks to team kite

  3. Akash says:

    Great update. Good work as always by Zerodha.

  4. Dayanand Narwade says:

    So there is no need to unpledge stocks for selling it ? If so then there is no advantage of keeping stocks free, am i correct ?

  5. Anjay Km says:

    This is an excellent change. Thanks for the update

  6. Prashant says:

    Thanks a lot for providing “instantly sell pledged stock” facility.
    I will be happy if you could explain now, how zerodha will charge pledge/ unplege fee in above scenario?
    Please explain all circumstances for pledge/ unplege fee.

  7. Hafeez says:

    Very nice ….thanks guys ….you are simply superb….

  8. rathod says:

    Much awaited move.
    Kindly consider pledged shares to sell in auction too..

  9. Sarabjeet says:

    Can I sell pledged etf without unpledging??

    • Shubham says:

      Hi Sarabjeet, if the pledged ETF is considered as cash equivalent like LiquidBees etc., it cannot be sold instantly. All other ETFs you can. You can check the list of cash equivalent and non-cash equivalent securities here.

      • NK says:

        What is the process to sell liquid bees then?
        First unpledge and sell only when the shares are in your account?


      • SK says:


        1) This is regarding cash equivalent securities and ETFs. I wish you guys allow these instruments also to be sold without unpledging. Is there any specific reason why you don’t allow that? What are implications for the broker?

        Most of the time, you need to fire sell your holdings due to large and unexpected changes in the markets and due to which there is a margin call. Other times, you can plan exit from such instruments where unpledging can be done as per the process. When there is unplanned/fire sell, anyone would want to exist cash equivalent instruments so that it doesn’t affect profits due to temporary adverse situations (like recent Adani news). Whereas, selling other equities, in fact creates a situation where you most likely incur losses due to the adverse market conditions, even though those could be temporary.

        Therefore, in my opinion, your new system doesn’t help much other than in situations where a pledged stock has surged high and you want to book the profit without waiting.

        2) As a contingency, you have to keep substantial amount of cash in the account which doesn’t generate any revenue for the trader/customer. However, it generates decent amount of return for the broker from the broker’s bank (here HDFC). In USA, brokers like Robinhood are paying 4% to their customers on the free cash balance sitting with the broker. Since in India, the RBI interest rate is more than Fed’s rate in USA, I would suggest Zerodha can also start giving back at least 2 to 4 % interest to customers for their free cash sitting in the account. You might say why should we pay when no brokers are paying? My reply to this is aren’t you supposed to be different and better than other brokers?

  10. Dipak lathia says:

    This step is very very good 👍 for for team’ of zerodha…🙏

  11. Jignesh says:

    Can we also sell pledged mutual funds via this option?

  12. Yogesh says:

    Greatest ever feature in kite.
    This one limitation alone has reasons to change broker but now ZERODHA is unbeatable.

  13. Anikethan says:

    Suppose I have sold a CE option against holding. But I have also pledged the holding for collateral margin.

    On the expiry day, the position is ITM, I am willing to give delivery. How will Unpledging work in this scenario?

    • parth says:

      Nice question. Please need an answer for this

    • Shubham says:

      Hi Anikethan, pledged stocks are considered towards physical delivery obligation. If you’ve submitted POA, you don’t have to give unpledge request.

      In case you’ve not submitted POA, you will have authorize pledge debit before Friday or on expiry day itself. We also send notification in this case.

    • Vivek says:

      Very important question. Zerodha team please explain.

  14. Rajkumar says:

    Also like other discount brokers, please reduce brokerage for F&O. Else have a yearly package of X Rs.

  15. Venkat says:

    It’s a very good feature, thanks for having it in Kite

    I am requesting for one more feature, which is profit based exit, when we reach a particular profit it should exit all the positions.

    For example, I am doing one strategy which has four legs and my target is 2000, so when the profit reached 2000 it should exit all the positions (four legs).

    Please try to bring this feature as it will helps lot of people who are involving in other works in their day to day life, as they are not able to track profit and loss each and every minute.

    Thank you soo much:)

  16. Parag says:

    Very Good Step👍

  17. Mehul says:

    If I have shares pledged, will I still be eligible to sell shares in Auctions?

  18. Parag says:

    Why is it not applicable to cash equivalent securities? That should also be equally doable as others.

  19. ANURAG Jain says:

    Very good initiative by zerodha
    I pledged my shares and this process sell my shares instantly 👌👌👌👌👌

  20. Anil Kumar says:

    I have two questions.

    1. After selling the pledged stocks, do I have to place an explicit request later for unpledging or that is implicit?
    2. For meeting physical delivery obligations for ITM stock options, do I still have to place an unpledging request if the stock was pledged for margin or it will be automatically get unpledged?

  21. indira says:

    great change, this will help trader to exit stock in time and not loosing the precious levels for which he was waiting to sell by unpledging and pledging again if it falls more thanks for this feature

  22. Namita says:

    Great change and will make it more lucrative..
    Please start the margin funding based cash stocks which can be hold for BTST and other trades.. Due to lack of this feature, i am moving away more and more to other broker.. please provide this facility also… will be really very helpful for safe traders..

    • Shubham says:

      Hi Namita, MTF is on our list of things to do. We’ve explained the reason for not doing it here.

      • NAMITA says:

        I read the reasoning and it might be correct. You are providing a platform where you need to compete. let me share what i have done as retailer. I bought the top 3 company stocks, TCS, Infy and reliance.. I pledge them and with margin fund, i am playing safe trading in Cash market instead of F&O. With once in really bad situation like COVID or sudden crash, the situation can go bad. I am using it from last 2 years and its working well for me.. Might be it can work for others.
        if its open for F&O, then why not for cash stocks also.. choose the stocks like Nifty 500 to allow retailers to play only in those stocks with margin funding.. rest, i am sure u know ur business and how to keep growing..
        keep rocking…

  23. Kishore says:

    Most awaited feature is finally available!!! Keep doing great Zerodha

  24. PARTH says:

    Any extra cost involved in selling pledged shares?


    Will this be true for Mutual Funds holdings as well? Or I need to first unpledge them and then sell next day.

    • Shubham says:

      Hi Vinod, you will have to unpledge the mutual funds on Console before selling them. You can check the unpledging process here.

      • VINOD KUMAR PRASAD says:

        Well, i expected same for Coin too. Where i could atleast place request to sell my equity Mutual Fund holding without waiting an extra day for unpledging and then place sell order.

        • Shruthi says:

          Hi Vinod, selling pledged mutual funds instantly will not be allowed since the sale proceeds are directly credited to the client’s primary bank account.

  26. Honey says:

    so if I had pledged the entire quantity of my holdings and then I instantly sold the stocks on any day do I have to unpledge the stock from the console backend?

  27. Shobha CR says:

    Dear Zerodha,
    If cash available in account, then margin shortfall won’t happen , right?

    • Shubham says:

      Right, Shobha. If you have adequate funds in your account. There won’t be any shortfall after selling pledged shares from your holdings.

  28. Ashish Khattri says:

    Makes sense! As long as requisite margins are maintained, sale of pledged securities should not be restricted.

  29. Satya says:

    Great Feature.

  30. Sibi says:

    Please facilitate pledging in Orbis custodian accounts as well.

  31. Smit says:

    What about Equity Mutual Funds? Can we sell them without unpledging?

  32. Ashish Agarwal says:

    Excellent change and update .. thanks for it.

  33. Vikas says:

    If this was done a week back, i would have saved lot of money because of Adani Total Gas stock

  34. Shobha CR says:

    Excellent, one more doubt.
    Can we use G-Sec for 100% margin requirement??
    Now it is 50% non-cash equivalent and 50% cash equivalent for positional selling. If I buy G Sec for 100% of capital, can I use this for selling or should I keep 50% Non-cash equivalent to do overnight selling positions?

    • Shubham says:

      Hi Shobha, G-Secs are considered as cash equivalent so you can use the margin received from pledging G-Secs or other cash equivalent securities for 100% margin requirement.

      However, to buy options or settle losses and charges, you will need cash balance in your account. The margin received cannot be used towards this.

    • SaurabhM says:

      Yes have the same Q… Pls confirm…

  35. DORAIRAJ K says:

    An empathetic step by ZERODHA to reduce losses of traders



  37. Kedar says:

    Does this mean pledged stocks can be used for the settlement of in the money futures/options on expiry?

    • Shubham says:

      Hi Kedar, pledged stocks are considered towards physical delivery obligation. If you’ve submitted POA, you don’t have to give unpledge request.

      In case you’ve not submitted POA, you will have authorize pledge debit before Friday or on expiry day itself. We also send notification in this case.

  38. Tharakesh Guptha says:

    Really great feature to have, thanks.
    But, I would appreciate if this is applied to cash component instruments too. Because I don’t know what’s the reason for holding it up, since all securities are same, when it comes to technicality of enabling this feature?

  39. Amarjeet says:

    This step of zerodha is really appreciating

  40. v rama raju says:

    very much thank full to you zerodha team. very much useful for (investor +trader) like me thank you again

  41. Shailesh says:

    Does GTT work in case of selling pledged share?

  42. Mak says:

    The critical part of margin funding is cash equivalents, if it is possible to apply this to liquid bees then we will be able to use our surplus cash in a very effective way. OfCourse Govt securities will not be feasible but Kindly consider to include liquid bees. It will be of great help.

    • Kishore says:

      @Zerodha Team,
      Please consider adding liquidbees to this instantly sell without unpledging feature.

      • Shruthi says:

        Hi Kishore, liquidbees collateral margins are considered equivalent to cash. Currently, cash equivalents cannot be sold without placing the unpledge request via Console. We’re working on allowing pledged cash equivalents securities to be sold instantly. Will keep you posted 🙂

  43. Manish says:

    Can we used money from pledged stocks to buy new stocks or is it only used for trading?

    • Shubham says:

      Hi Manish, the collateral margin received from pledging cannot be used for buying stocks for delivery. It can only be used for intraday equity, trading futures, and selling options. You can learn more on pledging here.



    • Shubham says:

      Hi Nitin, pledged stocks are considered towards physical delivery obligation. You don’t have to give an unpledge request if you’ve submitted POA. If you’ve not submitted POA, you will have to authorize the pledge debit before Friday or on expiry. We also send notification in this case.

  45. Varda says:

    This is one of the best things to happen. It should have been inaugurated by PM ji 🙂

  46. Paarth says:

    Great feature 🙂

  47. Vipul says:

    “you will receive 80% of the sale credit to your account, just like any other sale of free holdings.”
    When will we receive the remaining 20%. Next day?

  48. Shankar says:

    Not sure whether this was asked. If one completely sells a pledged stock against which an F&O position already exists, I understand that by end of day this position would be closed. But in the interim, there would be inadequate margin intraday. Will this attract penalty as CCI monitors the utilization limit intermittently?

  49. roy says:

    If I place an order to sell pledged shares, but only part of the order gets filled, will the entire quantity for which the order was placed be unpledged or only the quantity that got filled will get unpledged?

  50. Suman says:

    Is unpledging not required for bank bees, nifty bees, ITbees too? I checked on the sheet and don’t find the options, so confirming.

    • Shubham says:

      Hi Suman, BankBees, NiftyBees, and ITBees are considered non-cash components and can be sold instantly without unpledging. Only the ETFs that are in the cash component list cannot be sold instantly, you will have to place unpledge request from Console before selling.

  51. Gowda says:

    “you will receive 80% of the sale credit to your account, just like any other sale of free holdings.”
    When will we receive the remaining 20%. Next day?

  52. Aditya says:

    Great feature. Small bug – if I have pledged units from long term portfolio and I also have bought some units of same stock for intraday or short term trading, when I sell the units bought for short term trading, the pledged units get sold. This wasn’t the case earlier. Ideally units that are not pledged should get sold and only if the units aren’t available then the pledged content should be deleted. Also a info pop up saying pledged units are being sold would be nice. Thanks

    • Shubham says:

      Hi Aditya, if you have free holdings of the pledged stock and even if the quantities are meant to be sold from the free holdings. the pledged quantities are considered for selling first. However, the quantities will be debited from the free holdings at the end of the day, and the collateral margins and pledged quantities will be restored the next day. We’ve explained this here.

  53. devendra says:

    Can I apply for redemption Equity MF without unpledge,

  54. harish says:

    for small case investors will the stocks continue to reflect in the small case after i pledge them?

  55. Nagendran says:

    thanks again for one more customer centric initiative ..
    Keep rocking ..

  56. Abhishek says:

    “If you buy back the pledged quantities that you sold on the same day, the pledged quantity will be reinstated, and the collateral margin will be immediately added back to your account.” for this will there be any charges applicable ?

    • Shubham says:

      Hi Abhishek, this will be considered an intraday trade and will be charged accordingly. The brokerage for equity intraday trades is 0.03% or Rs. 20 whichever is lower per executed order. You can check all the charges here.

  57. rakshi says:

    Can we sell the Pledged etf like niftybees, niftyitbees, without unpledging

    • Shruthi says:

      Hi Rakshi, if the pledged ETFs are considered cash equivalents like LiquidBees etc., they cannot be sold instantly—all other ETFs considered non-cash equivalents can be sold instantly. You can check the list of cash-equivalent and non-cash-equivalent securities here.

  58. Hitesh says:

    Thanks, for this….. Lets say I have 25300 qty of HDFCBANK
    1. I have pledged all and I got 3.75 Crore after pledging..
    2. I sold HDFCBANK 1700 CE of Feb expiry and got a premium of 7rs (total ~ 177000 which is 25300*7) using pledged amount which needs margin of ~ 66 Lakhs as I am not having any cash in my account.
    3. In the last week of expiry, HDFCBANK spot becomes 1900… Here, will you ask me for 100% margin? If yes, how will that be managed as I have no cash and already used collateral amount for the option writing which is less than 100% margin requirement (1900*25300)
    4. On Last Thur, if HDFC closes at 1700 or below 1700 then I will get all the premium
    5. On last thur, in case HDFC goes above 1700 … I can either book the loss in option and exit else I can give the delivery. If I opt for second case, how it works.. Do I need to take any action as 25300 is already pledged for margin or you guys will exit the positions after market close and will unpledge and give the delivery? Is there any additional charges in this case and what else i need to know.. Basically If I decide to give delivery, then no action needed from my side and you will square off the open position (option writen at 1700CE) and will unpledge and then give delivery?? So I can just let the system manage it.. IS there any additonal charge for same?

    • Shubham says:

      Hi Hitesh, regarding point 3, the margin requirement only increases for Long ITM stock option positions from expiry minus 4 days as the exchange blocks physical delivery margins. For short positions, the margin requirement will increase on the day of expiry to 40% of the contract value or SPAN + Exposure(whichever is higher).

      In case your short CE position expires ITM, you’re required to give delivery of underlying shares. If the shares are pledged, these are considered towards physical delivery obligation. You don’t have to give an unpledge request if you’ve submitted POA. If you’ve not submitted POA, you will have to authorize the pledge debit before Friday or on expiry. We also send notification in this case.

  59. Shabari says:

    This is an excellent feature to have , Kudos to the team that made it possible.

  60. Naushad says:

    Superb!! Long overdue. Thanks!!

  61. Niranjan Joshi says:

    Hi, it’s a great new for ALL, and Thanks to Team Zerodha for making it possible.

    It is clear from the previous reply that there will be No Charges for unpledging and selling shares, since pledging charges have been increased to Rs. 30 + GST. Could you please let us know whats the charges for those shares which were pledged at earlier.

    • Shubham says:

      Hi Niranjan, there have been no changes in pledging changes, these are the same as before (Rs. 30 + GST per instrument irrespective of the quantity pledged). For unpledging shares, there are no charges.

  62. Abilash says:

    If I have 1 lot of F&O shares in my holdings which I pledged for Margin benefit and sold CE of the same stock,(Covered call). If the stock price moves above the CE strike price on expiry, will it be automatically settled? or should I have to un-pledge them?

    • Shubham says:

      Hi Abhilash, pledged stocks are considered towards physical delivery obligation. You don’t have to give an unpledge request if you’ve submitted POA. If you’ve not submitted POA, you will have to authorize the pledge debit before Friday or on expiry. We also send notification in this case.

  63. Akhil says:

    Do I need to unpledge my holdings before selling them?

    For eg. I hold 100 qty of a stock, so if I want to sell it now, do I have to first put the unpledge request then sell, or I can sell it directly? (I have my POA submitted)


    just waiting for this to be done from zerodha side. thanks a lot zerodha

  65. Lenin Nair says:

    It’s a great change. I have a question about auction stocks. If this is also available for auction stocks, would be great. Is there any change like that?

  66. Sumit says:

    What about pledged mutual funds? Pls make this feature available for pledged mutual funds also.

  67. nishant says:

    i can’t see the sell button in my holding page. am i doing it wrong, or is there another way to sell those pledge stock ?
    however i can see the exit option though, but i don’t think that right approach.

  68. Hardik Shah says:

    SGB are cash equivalent
    Is SGB allowed to sell instantly?
    If not then I am disappointed as SGB prices depends on international gold prices which can fluctuate 1-2 percent in matter of hours

  69. Mohandas says:

    Wonderful. Thanks a Zerodha.

  70. Mehul Sangani says:

    Possible bug:

    Say for example I’ve 100 shares of Reliance, of which 90 are pledged and 10 are unpledged.
    If I try to sell 10 shares in auction, it doesn’t allow me.

    Error: “Pledged holdings cannot be sold in the auction market. Please try selling them in the normal market instead. Read more.”

    • Shubham says:

      Hi Mehul, could you please create a ticket at with more details and give the ticket number? We’ll have this checked.

      • Mehul Sangani says:

        Opened ticket 20230223316605

        Please do the needful at the earliest.

        • Shruthi says:

          Hi Mehul, we see that our team has already responded to your ticket. Please login to and check. For further assistance, you can reply to the same ticket.

        • Shubham says:

          Hi Mehul, our team has responded to your ticket. Please login to and check. For further assistance, you can reply to the same ticket.

  71. Panka says:

    Why selling of pledged stocks not allowed in auction markets then?

  72. Shabari says:

    Can we sell, pledge stock on GTT order?



  74. CHANDRESH SHAH says:

    1) If I have 100 shares pledged and 100 shares in free holdings, and I sell 100 shares only from the free holdings, what will happen? Why should it affect my pledged shares? 2) In case I sell all 200 shares and I don’t buy back at the End of Day, how Zerodha will give delivery to the buyer of the shares? 3) When will I receive 100% sell proceeds from the sold pledged shares? 4) Why unpledging is required, when we can sell pledged shares instantly and delivery can be given at the EOD?

  75. rama rao says:

    I came to know just now that, pledged stocks for which loan has been taken, cannot be sold without unpledge process. Which should have been made clear in the beginning of this mail/message. I wasted talking explaining to the support team to know this.

  76. sanket says:

    if i pledge nifty bees of 1 lakh Rs than how much fund will release?? and how much fund will be use for Option which can not under the Interest??

    plz suggest me

    • Shubham says:

      Hi Sanket, you can check the haircut for all securities here. The collateral margin can only be used for intraday equity, trading futures and shorting options. If you want to buy options, you will need cash in your account.

      For overnight F&O positions, exchanges stipulate that a minimum of 50% margins should be in cash or equivalent, and the remaining 50% can come from the collateral margin. If you use more than 50% collateral, then interest will be applicable at 0.035% per day. Explained here.

  77. shan says:

    Lets say,
    Today 10 INFY Pledge – I pay pledge charges + GST
    Tomorrow 20 INFY Pledge – I pay pledge charges + GST
    Day after Tomorrow I sell 30 INFY – do I need to pay Unpledge charges + GST, 2 time. As I pledged it using 2 pledge requests?

  78. Rakesh says:

    If I have 200 liquidbees which are pledged and 100 liquidbees bought later which are unpledged, when I sell them, how does the FIFO apply here?

    Similar to stocks, first 100 from pledged go out and the next 100 get pledged?
    The unpledged lot will be sold?

  79. Rahul Saria says:

    After selling a pledged shares normally, no separate unpledgeing is needed right ?

  80. vijay says:

    after selling the pledged holdings , is it required to unpledge the stocks also ( i mean do we need to complete the process of unpledge later) OR it will be settled automatically.

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