Question { 6894 }

what are the documents/procedure required for hypothecation
of stocks

Answer

hypothecation is an agreement or contract that permits a bank or creditor to utilize the collateral pledge to secure a loan, in case the loan is unpaid at maturity.
the pledging of securities as collateral.for example to secure debit balance in a margin account.

the documents required for hypothecation of stocks are:
- photo Id Xerox
- Pan card xerox
- any property documents, certificate of deposit, etc., are necessary as security for loan amount.