Can a customer pledge all his shares when taking a loan against securities/shares (LAS)?
Answer
Answer
No. A customer cannot pledge all the shares held by him/her.
A lender- bank or non-banking finance company (NBFC) – has its own approved list of stocks.
Your portfolio could be worth Rs. 10.5 crore, but may be the stocks approved by the lender make up for only Rs. 7 lakh. Thus, you will get a loan against the value of stocks approved by the lender- that is Rs. 7 lakh in this case.