What is pledging of shares?
You can get margin against the shares present in your demat account to avail the benefit of trading without having to add more funds. This is possible by pledging your shares in favor of Kotak Securities. The margin that you receive against your pledged shares is subject to a deduction which is called as haircut.
For example, if you pledge ITC shares worth Rs.10 lakhs, where applicable haircut for ITC is 20%, you would receive a margin of 8 lakhs in your trading amount.
To know the process of pledging your shares, refer the link below.