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Post Date : July 10, 2025
Pledging securities is a common practice among investors who want to raise margin or trading capital without liquidating their holdings. However, many users are confused when they try to sell these pledged shares outside of normal trading hours—particularly during the post-market session or in the auction market—only to find that the order cannot be executed.
This blog explains why such restrictions exist, what risks are involved, and when you can sell your pledged holdings safely.
Pledged holdings refer to stocks in your Demat Account that you’ve pledged to your broker in exchange for margin or trading limits. Although you retain ownership of the shares, they are temporarily “locked” as collateral and cannot be freely transferred or sold without first being unpledged or liquidated through broker-authorized channels.
The primary reason clients cannot sell pledged shares during the post-market session (3:40 PM – 4:00 PM) or auction session (11:45 AM – 12:30 PM) is the risk of short delivery.
Here’s why:
Under SEBI’s T+1 settlement cycle, the seller must ensure timely delivery of shares on the next trading day. If the pledged shares cannot be confirmed and released in time (especially during off-market hours), which results in non-compliance and potential penalties.
Clients can only sell pledged shares during regular market hours, i.e., from 9:15 AM to 3:30 PM, provided:
Once a sell order is placed during normal hours, the broker’s risk management system can manage the settlement timeline appropriately—thus avoiding short delivery.
Session Type | Can You Sell Pledged Shares? | Reason |
Normal Market | ✅ Yes | Shares can be processed for T+1 settlement. |
Post-Market | ❌ No | Risk of short delivery; no time for release confirmation. |
Auction Market | ❌ No | Trading is only allowed for institutional settlement purposes. |
Contact RMoney at 0562-4266600 / 0562-7188900 or email us at askus@rmoneyindia.com our team is here to guide you through all demat, pledge, and trading-related queries.
Disclaimer: This Blog is for educational purposes only and does not constitute investment advice. Always consult with a financial advisor before making trading decisions.
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