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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

CDSL issues Creation / Invocation of pledge of Securities through the Depository System

13-Mar-2026 | CDSL/OPS/DP/SETT/2026/180

CDSL has issued a communique on the Creation / Invocation of the pledge of Securities through the Depository System. Through this communique, DPs are required to obtain a signed undertaking from the client as specified in the document for the creation/invocation of the pledge of securities. The undertaking to be obtained from the pledgor & pledgee: 1) The pledgee undertakes to provide reasonable notice to the pledger and comply with the requirements of Sections 176 and 177 of the Indian Contract Act, 1872. 2) The pledger and pledgee undertake to abide by the provisions of the Indian Contract Act, 1872, the Depositories Act, SEBI Regulations, circulars, and bye-laws in force from time to time, as may be applicable. Further, from April 06, 2026, in case of invocation of pledged securities, intimation/notification will be sent by the depository to both pledgor and pledgee, confirming that the pledge has been invoked and the pledgee has been recorded as ?beneficial owner? in terms of Regulation 79(8) of the DP Regulations.

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