You are a Speaker on Corporate Laws at a Seminar. One person from the audience has sought your opinion on the following matters: How does an investor avail services of a Depository in case of pledge of shares?

In the case of pledge: Before creation of any pledge or hypothecation in respect of a security, the beneficial owner is required to obtain prior approval of the depository and on creation of pledge or hypothecation; the beneficial owner shall give intimation of such pledge or hypothecation to the depository. The depository shall make appropriate entries in its records which will be admissible as evidence.