The procedures for obtaining a valid pledge of securities are generally simple when the pledgor has actual possession of physical securities or is identified as the interest holder of dematerialised or immobilised securities directly on the books of the issuer. The procedures are not so simple when the subject of the pledge is an interest in securities held through accounts with a financial intermediary. In the case of dematerialised or immobilised securities, most countries will treat a pledge of such interest as valid only if there is an agreement between the parties and each intermediary between the pledgee and the dematerialised or immobilised securities credits the pledgee's interest in such securities to a segregated account in the pledgee's name on its books or the issuer credits the pledgee's interest to an account in the name of the pledgee itself. Few countries will treat a pledge of such interests as valid if there is an agreement between the parties themselves and the interest is merely credited to an account in the name of the pledgee on the books of the financial intermediary.

It has been suggested that the collateralisation of credit exposure should be as simple as possible. It should be sufficient for secured creditors to obtain "control" over pledged interest on the books of the intermediary and that this should have the same effect as obtaining possession of physical securities. The method for this would be by having interests in the securities credited to a special account in the name of the pledgee or having the intermediary agree to follow the instructions of the pledgee to liquidate the securities or interests in securities without any further action by the pledgor. An agreement could be drawn up between the pledgor and pledgee and contain provisions describing when the pledgee would have the right to give such instructions. The pledgor should be able to keep trading interests in securities credited to the special account prior to any default. There should also be efficient procedures to enable the pledgee to liquidate or realise the value of the pledged securities or interests in securities. Similarly, it should be possible for the recovery of damages by the pledgor in cases of wrongful liquidation or realisation of securities.

In the study conducted, only Sri Lanka does not recognise dematerialised securities for the purpose of pledging. In the other countries, securities could be pledged by being transferred into a specially marked securities account of the pledgee. In some of the countries, liquidation of the pledged securities can be carried out but has to be supported by documents evidencing the pledge, while in others, the securities cannot be liquidated until revocation of the pledge.