A. Both BOs, investor (pledgor) and the lender (pledgee) must have BO an account with the same depository, B. Pledgor will have to instruct DP to create pledge in prescribed standard form (Pledge Request Form) with the details of the securities, C. The lender (pledgee) has to confirm the request through his /her DP, Once this is done, securities are pledged. D. All financial transactions between the pledgor and the pledgee are handled as per usual practice outside the depository system.