P symbol on the Kite Holdings page
The P symbol on a Kite Holdings tab row is a small flag indicating that some or all of the shares in that row are pledged, that is, locked as collateral against a margin requirement. Pledged shares remain in the user’s demat account, count in the displayed quantity, but cannot be sold without first un-pledging.
What pledging is for
Margin pledge lets a user use their equity holdings as collateral to access additional margin for F&O trading, currency, or commodity positions. Instead of moving cash into the trading account, the user pledges shares; the broker accepts them as collateral (subject to a haircut).
The mechanics:
- User selects shares to pledge.
- Authorises via OTP from the depository (CDSL CDSL Easiest or NSDL Speed-e).
- Shares get an “encumbered” flag in the depository.
- The broker receives a confirmation; the haircut-adjusted value is added to the user’s margin.
How the P shows
| Surface | Where the P appears |
|---|---|
| Kite Holdings row | Next to the Qty column |
| Kite app Holdings | Right of the scrip name or Qty |
| Console Holdings | A dedicated Pledged column |
The P is a static glyph; clicking it does not open any menu. The information it conveys is “this position is locked”.
Haircut and effective margin
When you pledge Rs 1 lakh of stock, you do not get Rs 1 lakh of margin. The depository / broker applies a haircut based on the stock’s volatility and liquidity. Typical haircuts:
| Asset class | Haircut |
|---|---|
| Liquid blue-chip equity | 10-15% |
| Mid-cap equity | 20-30% |
| Small-cap equity | 30-50% (some scrips not accepted) |
| Liquid ETFs (Nifty BeES, Gold BeES) | 5-10% |
| Liquid debt funds | 10% |
For Rs 1 lakh of Nifty BeES with a 10% haircut, you get Rs 90,000 of usable margin.
Implications
Cannot sell pledged shares directly
A sell order placed on a pledged scrip will fail or be partially filled (depending on whether some shares are unpledged). You must un-pledge first:
- Console > Portfolio > Pledged shares > Unpledge.
- Confirm via depository OTP.
- Shares are released; the corresponding margin is removed.
Margin requirement increase / decrease
Once shares are pledged, the depository charges a small annual fee. The user can keep them pledged indefinitely, but the cost-benefit must be evaluated annually.
Dividends and corporate actions on pledged shares
Pledged shares continue to receive dividends , bonus issues , and other corporate actions. The shares are encumbered but you remain the legal owner; entitlements flow to your account.
Pledge is per scrip, not per account
You can partial-pledge a scrip: pledge 50 of 100 shares, leaving 50 sellable. The row shows the P symbol next to the pledged 50; the sellable 50 are free.
When to un-pledge
| Reason to un-pledge | Action |
|---|---|
| Sell the underlying shares | Un-pledge first, then sell |
| Reduce F&O exposure | Un-pledge to free margin |
| Pledge fee not worth the margin | Calculate cost-benefit and decide |
| Switching to cash margin | Move cash in, un-pledge shares |
Common confusions
- P appears but I never pledged. Check Console > Portfolio > Pledged shares for the actual list and trade log. If unfamiliar entries appear, contact support immediately (possible account compromise).
- P does not appear after pledge confirmation. The depository confirmation can take up to T+1 to reflect; refresh the Holdings tab after that window.
- Sold pledged shares accidentally. The sell order would have failed; if successful, the un-pledge happened concurrently. Verify via Console.
See also
- Kite Holdings tab explained
- Kite Positions tab explained
- Margin pledge (Zerodha)
- Margin haircut
- SPAN and exposure margin on Kite
- Margin required on order window
- Margin available / used / cash on Kite funds
- Collateral (equity) on Kite
- Collateral (liquid funds) on Kite
- Briefcase symbol on Kite
- T1 above shares on holdings
- Day’s P&L on holdings calculation
- Realised vs unrealised profit calculation
- Holdings value differs Console vs Kite
- How to fix ESOP shares not on Kite
- Mutual fund holdings on Kite
- Futures and options
- Margin shortfall and auto-square-off
- Dividend (India)
- Bonus issue
- Stock split
- CDSL
- NSDL
- Demat account
- Kite (Zerodha)
- Kite web
- Kite mobile app
- Zerodha
- Zerodha Console
External references
References
- SEBI, Margin pledge and re-pledge framework, circular dated 25 February 2020.
- Zerodha Support, Margin pledge and un-pledge, support.zerodha.com.
- CDSL, Margin pledge procedure, cdslindia.com.
- NSDL, Pledge instruction handling, nsdl.co.in.