29 November 2009
Banks normally sanction loans on pledging of securities held in physical form. Since most of the securities have now been compulsorily required to be held in dematerialized form, will Banks now accept such dematerialized securities as pledge for granting loans?
30 November 2009
As a matter of fact, the bank will insist the physical shares to be dematerialised. Once demated, they will ask you to pledge them in favour of their demat account so that in case of your default, they can sell them in the open market easilly.