One of the common transactions we come across in today’s market is Loan against Shares. In this kind of a product a lender (typically a Bank or an NBFC) lends against adequate collateral. The collateral is normally the pledge of listed shares (in most cases). In some cases one may have to deal with be partial collateral of liquid listed shares along with unlisted shares as collateral. The lenders decide a mechanism to monitor these on a daily basis. The Trustee here plays the role of monitoring these shares for the lenders so that adequate margin is maintained against the market value of shares offered under the pledge. The margin calculation is as advised by the lender(s) which adequacy depends upon the volatility of pledged shares and/or market conditions.