Answer Posted / eswar

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.

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