NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Operations
Mr. Arvind Shah holds 500 shares in his demat account and has pledged 200 of them. If he wants to sell shares on the exchange, how many shares can he deliver from the free balance?
He can deliver 300 shares. Of the 500 shares held, 200 are pledged and cannot be transferred, so the free balance is 500 minus 200, giving 300 shares available for sale or transfer.
- A300 sharesCorrect
- B500 shares
- C200 shares
- D700 shares
Explanation
Pledged securities are moved to a pledged (blocked) status and cannot be transferred while the pledge subsists. Free balance equals 500 minus 200, which is 300 shares. Delivering 500 would ignore the pledge, and 700 exceeds total holdings.
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