Pledging of shares enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares. You can pledge your shares and you can either get the option to make further investments using your pledged securities or you may even get money against your pledged securities that can be utilized to finance your personal needs.
A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue to be reflected in your DP account but the concerned securities are "blocked" and you cannot use it for any transactions. As and when the pledge is to be removed, based on confirmations received from you and the pledgee (your DP), the blocked securities will be released to "Free Balance" of your account.