Definition
Lien Marking
Lien marking is the temporary blocking of funds or securities in an account as security, preventing their use until the lien is released, common in loans against deposits or shares.
Lien marking places a hold on assets — a fixed deposit, mutual fund units, shares or account balance — so they cannot be withdrawn or sold while they serve as collateral or security. The funds remain yours but are frozen for the lien's purpose.
It is used in loans against FDs or securities, where the pledged asset is lien-marked until the loan is repaid, and in UPI mandates for IPOs where the bid amount is blocked. Once the obligation ends, the lien is released.
Understanding lien marking helps you know why certain funds appear unavailable and ensures you do not plan to use money that is committed as security.
Related terms
- UPI MandateA UPI mandate is a standing instruction created on a UPI app that pre-authorises a merchant to collect a one-time future or recurring payment up to a set limit.
- Corporate FDA corporate fixed deposit is a deposit with a company or NBFC offering a fixed interest rate, usually higher than bank FDs, but without bank-style deposit insurance.
- Demat AccountA demat account holds your shares and securities in electronic form, eliminating physical certificates and enabling seamless trading and settlement on stock exchanges.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.