NISM Certifications · NISM-Series-VI: Depository Operations · Special Services - Pledge and Hypothecation
In a depository pledge, the BO who creates the pledge in favour of a lender is referred to as the:
The beneficial owner who creates the pledge by offering securities as collateral is called the pledgor. The lender receiving the securities as security for a loan is the pledgee. Registrars and clearing members are not parties to a pledge.
- APledgorCorrect
- BPledgee
- CRegistrar
- DClearing member
Explanation
The BO who offers securities as collateral is the pledgor, while the lender who accepts them is the pledgee. The registrar and clearing member do not hold either role in a pledge.
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