Demat Shares Missing or Wrongly Pledged? Trace, Freeze, Complain

Reviewed on: 2026-06-12.

Vikram, a salaried investor in Chennai, bought 150 shares of a company in cash and saw the debit in his bank. A week later his Consolidated Account Statement showed only 150 of an unrelated holding pledged, and the 150 he bought sat in a “pledge” column he never authorised. He had received no OTP from the depository for any pledge. What had happened was that his broker had taken his shares into a margin pledge against the broker's own funding requirement, without his consent. Vikram emailed the broker's compliance officer the same day, asked for an account freeze, attached the CAS, and when the broker stalled, escalated to the depository and then SEBI SCORES. The pledge was reversed and the shares returned to his free balance.

His case shows the order that works: trace it on the CAS, freeze the account, complain in writing to the DP, then escalate. The remedy differs slightly depending on whether your shares were wrongly pledged or actually transferred out, so first be clear which one you face.

• A wrongful pledge. Your shares are still in your demat account but locked as collateral. They remain yours; you just cannot sell until the pledge is released. Since 2020, creating a margin pledge needs an OTP sent directly to you by the depository, not by the broker. If shares sit in the Pledge Balance and you never confirmed an OTP, the pledge is likely unauthorised.
• An unauthorised transfer. The shares have moved out of your account entirely, usually through an off-market instruction. This shows as a debit in your demat transaction statement with no matching sale on the exchange. This is more serious. Ask the depository to freeze your account immediately so nothing moves further.

The Consolidated Account Statement is the depository's own record, so it overrides whatever the broker's app shows. Download it and read three columns for each security:

1. Free Balance: available to sell.
2. Pledge Balance: locked as collateral.
3. Lien Balance: locked for other reasons.

Get the CAS from the CDSL or NSDL portal using your PAN and date of birth. For real-time viewing, CDSL holders can use CDSL easi and NSDL holders can use NSDL IDeAS, both free. Any difference between the CAS and your broker's ledger is what you flag in writing.

Shares bought on the exchange credit to your demat under the T+1 settlement cycle, so a purchase on Monday should reflect by Tuesday end. If they have not credited after T+1, check your broker ledger for a pending payment, a margin shortfall, or a failed-settlement flag, because an unpaid balance can hold the credit. If you have paid in full and the shares still do not appear, that is a discrepancy to raise.

To: The Compliance Officer, [Broker / DP]
Subject: Unauthorised pledge / missing shares - BO ID [number]

I hold demat account BO ID [number] with you as Depository Participant.

[For missing shares] On [date] I bought [quantity] shares of [Company]
(ISIN [code]). Under T+1 they should have credited by [date]. My CAS
dated [date] does not show them in my free balance.

[For wrongful pledge] My CAS dated [date] shows [quantity] shares of
[Company] (ISIN [code]) in Pledge Balance. I gave no pledge instruction
and received no OTP from the depository authorising it.

Enclosed: CAS extract, demat transaction statement [date range],
broker ledger [date range], trade confirmation.

I request you to: 1) explain the discrepancy in writing within
[X] business days; 2) release the unauthorised pledge / credit the
missing shares to my free balance; 3) place no further pledge or
transfer without my OTP confirmation to the depository. Failing a
satisfactory reply I will escalate to [CDSL / NSDL] and SEBI SCORES.
[Name, PAN, BO ID, mobile, date]

1. Broker / DP first. Email the compliance officer, whose address is on the firm's Investor Charter page. Always follow any call with an email. SCORES expects you to have tried the intermediary first.
2. Depository. If the DP is unresponsive or unsatisfactory, escalate to CDSL or NSDL through their investor grievance portal. They examine the account-level record and can direct the DP. There is no fee, and an unresolved case can go to the depository's Grievance Redressal Committee.
3. SEBI SCORES. If unresolved, file on SEBI SCORES against the broker or DP. The entity must file an Action Taken Report, usually within 21 calendar days, with a review option if you are not satisfied. The old SCORES closed in 2024; use the current portal.
4. Smart ODR for a binding award. For conciliation and then arbitration with a binding outcome, use Smart ODR, conducted fully online.
5. Police in parallel for fraud. If shares were transferred out and sold, file a complaint on cybercrime.gov.in or at the local station alongside the SCORES track.

Since 2022 the Demat Debit and Pledge Instruction (DDPI) replaced the broad Power of Attorney brokers used to take. Under DDPI a broker can debit or pledge your shares only for exchange settlement and margin on your own trades, not move them to its own pool. Every pledge also needs an OTP sent directly to you by the depository. If you signed an old POA before that change, it may still grant wide powers, so ask your DP to replace it with a DDPI. Never share a pledge OTP with anyone, including someone claiming to be your broker.

SEBI is a public authority under the RTI Act. An RTI to SEBI can seek a broker's registration status, or whether SEBI has issued a show-cause or taken enforcement action against your broker or DP, subject to exemptions. Your broker, and the depositories CDSL and NSDL, are private-sector bodies and are not under RTI; the Central Information Commission has doubted treating the depositories as public authorities. Stock exchanges and the listed companies whose shares you hold are also outside RTI. For all of those, SCORES and the depository grievance cells are the right forums. File an RTI to SEBI at rtionline.gov.in and read why RTI gets rejected first.

Check your CAS and your broker ledger. A pending payment or margin shortfall can hold the credit. If you have paid in full and the CAS still does not show the shares after T+1, raise a written complaint with the DP and escalate to the depository or SCORES.

A genuine margin pledge needs an OTP sent to you directly by CDSL or NSDL. If your CAS shows a Pledge Balance and you never received or confirmed such an OTP, treat it as unauthorised and complain at once.

A pledge keeps shares in your account, locked; you stay the owner. A transfer moves them out entirely. Report a suspected transfer to the depository immediately for an account freeze, and route a wrongful pledge through the DP then the depository.

Yes. SCORES accepts complaints against SEBI-registered brokers and DPs. You must first raise it with the intermediary and allow time to reply. Register with your PAN, mobile and email.

No. The depository sends a pledge OTP only to you. Never share it with your broker or anyone. A caller asking for it is a red flag; refuse and report it.

No. They are not public authorities. RTI works only against SEBI, and only for SEBI's own records. Use the depository grievance portals and SCORES for your broker and DP.

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Download the missing or wrongly pledged shares checklist (PDF).