ND-PMS clients may pledge securities held in their demat accounts: SEBI

SEBI clarified that clients under Non-Discretionary Portfolio Management Services (ND-PMS) may pledge securities held in their demat accounts to take loans for themselves. "The client, as the beneficial owner of securities, has right to use its own assets...as pledge for loans," the market regulator said. The pledged securities may continue to be included in the portfolio manager’s AUM, it added.