Yes, locked-in securities can be pledged, but with specific conditions. While CDSL and NSDL systems permit pledging of locked-in securities, the pledgee can only invoke them after the lock-in period ends. This means the securities can be used as collateral for a loan or trade but cannot be transferred to the pledgee before the lock-in period is over.

Pledging and Lock-in: Pledging involves using securities as collateral to obtain a loan or margin for trading. Lock-in periods, on the other hand, restrict the transfer or sale of securities for a specific duration.

CDSL and NSDL Systems: Both CDSL and NSDL systems allow pledging of locked-in securities.

Invocation of Pledge: When a pledge is "invoked," the securities are transferred to the pledgee's account. However, if the securities are locked-in, this transfer can only happen after the lock-in period expires.

Example:

If you pledge shares that are subject to a 6-month lock-in, the pledgee can't take possession of those shares for trading until the 6 months are up.

Margin Usage: During the lock-in period, the pledgee can use the securities as collateral for margin purposes, but they cannot be sold or transferred to the pledgee.