Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 11 MARCH 2026

Enhanced Safeguards For Pledgors: Understanding SEBI'S New Pledge Framework

Saga Legal
Explore more from Saga Legal

The Securities and Exchange Board of India ("SEBI") has issued a circular dated 5th February 2026 ("Circular") revising the operational and legal framework governing the creation and invocation of pledge of securities through the depository system.

IndiaCorporate/Commercial Law
Neeraj Vyas
Neeraj Vyas
Mehak Chadha
Mehak Chadha
Author LinkedIn connections

I. INTRODUCTION

The Securities and Exchange Board of India ("SEBI") has issued a circular dated 5th February 2026 ("Circular") revising the operational and legal framework governing the creation and invocation of pledge of securities through the depository system.

While the procedural framework already existed under paragraph 4.13 of the SEBI Master Circular for Depositories dated 3rd December 2024 ("Master Circular") read with Regulation 79 of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 ("DP Regulations"), the present Circular now expressly integrates compliance with Sections 176 and 177 of the Indian Contract Act, 1872 into the pledge invocation process.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

A Sneak Peek Into A Historic Deal In The Entertainment Industry: How Paramount Beat Netflix For Warner Bros. – Lessons And Reforms For India

Chanakya, the ancient Indian strategist and author of the Arthashastra, taught that an opponent is overcome through four means: sama (persuasion), dana (inducement), bheda (division) and danda (force). The contest for Warner Bros. Discovery (WBD) is a modern illustration of all four. Netflix made the first offer and signed a merger agreement with WBD, yet Paramount played each of its cards with care.
IndiaCorporate/Commercial Law
Hammurabi & Solomon Partners
Hammurabi & Solomon Partners
Article

CCPS In India: Why Compulsorily Convertible Preference Shares Remain Central To Venture Capital And M&A Transactions

Compulsorily Convertible Preference Shares (CCPS) remain one of the most widely used instruments for venture capital and private equity investments in Indian companies. Their appeal lies in the ability to combine equity classification with negotiated economic and governance protections. But CCPS are not governed by a single, standalone statutory framework. Their legal treatment is instead shaped by the Companies Act, FEMA and foreign investment rules, tax law, and, where applicable, SEBI regulations.
IndiaCorporate/Commercial Law
King, Stubb & Kasiva
King, Stubb & Kasiva
Article

FCRA Amendment Rules, 2026: Key Changes And Practical Implications

AZB & Partners provides important disclaimers regarding the nature and purpose of their website, clarifying that no solicitation or advertising has occurred and that the information is provided solely at the user's request. The firm outlines the limitations of the website content and emphasizes that accessing it does not create a lawyer-client relationship. Users are informed about their responsibilities when using the site and the firm's intellectual property rights over the content.
IndiaCorporate/Commercial Law
AZB & Partners
AZB & Partners
Article

FDI In E-Commerce: India's Export-Focused Carve-Out Under Press Note 3 (2026 Series)

On 23 July 2026, the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, issued Press Note No. 3 (2026 Series) a document whose brevity belies the significance of what it achieves. In a little over two pages, the Government of India has quietly dismantled one of the most longstanding restrictions in its FDI policy architecture: the blanket prohibition on foreign investment in inventory-based e-commerce. The caveat, however, is precise and deliberate: the permission is confined exclusively to exports of goods manufactured or produced in India.
IndiaGovernment, Public Sector
Saga Legal
Saga Legal
Article

Gratuity Liability For Contract Labour: The Principal Employer's Exposure After The ONGC Ruling

On 9 September 2026, a Supreme Court Bench of Justice Ahsanuddin Amanullah and Justice Manmohan allowed a batch of appeals by Oil and Natural Gas Corporation Limited (“ONGC”) and set aside a Bombay High Court judgment that had fastened liability for gratuity on ONGC in respect of workers engaged through contractors in M/s Oil and Natural Gas Corporation Ltd v. Suryakand D. Lad.
IndiaEmployment and HR
Saga Legal
Saga Legal