Pledgee gives a pledge confirmation to his DP who enters it in the system. Status of pledge Instruction is changed to 'pledged'.
Loan is given by pledgee to pledgor outside the Depository system.
PLEDGE CLOSURE - 1. In CDSL system, Pledge closure is referred as unpledge, 2. Pledgor repays the loan to pledgee, 3. Pledgor gives a pledge closure (unpledge) request to his DP, 4. Pledgor's DP forwards the request to the depository, 5. The depository forwards the pledge closure (unpledge) request to pledgees DP.
Pledgee gives pledge closure (unpledged) confirmation form to his DP, 8. Pledgee's DP closes the pledge and pledge closure (unpledge) is forwarded to the depository. Securities are moved from 'pledged' balances to free balances in the pledgor's account, 9. The depository forwards the confirmation for pledge closure (unpledged) to pledgers DP, 10. Pledgor's DP intimates the pledgor
Unilateral Closure (Unpledge) of Pledge - the pledgee submits an instruction in the prescribed form to its DP to initiate unilateral closure of pledge/hypothecation. No action (confirmation / rejection) is required to be taken by the pledgor and/or pledgor's DP.
MODELEXAM® 
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