Approved List of Securities for Collateral(Column query)

Dear All,

What does the last column " Broker Limit Reacher - Y/N" Mean in Zerodha’s sheet of list of approved securities?

If yes, then it means Member-wise limit (i.e. Zerodha) for that particular security is reached

The total quantity of each approved security that can be pledged is limited at the trading member level by the clearing corporation.

You will not be able to pledge your holding if the overall maximum pledge limit has been reached for particular stock, ETF or mutual fund.

Support Article: Why am I unable to pledge my holdings on Zerodha?

Don’t see this column. It’s useless. It’s not updated on daily basis. So many times my pledge was rejected because broker limit was reached but in this sheet it was still showing ‘No’

Ah is it? I stick to the large caps with low haircut so usually I never get rejection but did not realize Zerodha fails to update it regularly

Thanks man

I recently experienced it with ICICITech etf. Just cos it was not allowed to pledge I had to sell it and buy ITbees and then pledge.

Generally, this happens with Debt funds or Stocks?

This is a critical factor behind my decision to invest in anything. I check beforehand and even verify again few minutes before actually placing the order as well, seems that’s for nothing.

Hmm, wonder what’s the long term solution for this, like say 8-10 years down the line, limit for more than half the things would have been breached…

I had this experience only with a couple of stocks and one ETF.
But if there is limit for stocks and ETF am sure it’s there for debt funds too. But so far I have faced no issue.

Yup, there too…

It was more than a year back. And the most recent one was some 3 months back.

ELSS funds now available for pledging.

Issued in FNO traders interest. :grimacing:

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Console shows the option for pledging ELSS funds, but it doesn’t get pledged even after following the process.

Unless of course, they have recently changed things…

Oh is it. I just saw it yesterday. So I just went ahead in pledging. Also verified it successfully in cdsl. Now let me check on Monday if collateral margin has increased or not.

Just perfect. I bought ICICI tech ETF on Friday, just to pledge it on Tuesday. Wish I had seen your post before buying lol.

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You never know. May be it is now allowed. Try your luck tomorrow :grimacing:

Are you able to pledge units that are still in lock-in? Must be a glitch then I guess. How can exchanges accept illiquid collateral?

No. I wasn’t able to. I confirmed the pledge with OTP but next day it’s again showing non console on units available to pledge.
On a totally different note, yes bank locked in shares are allowed to be pledged.

@ShubhS9 is there a way I can get notified when there’s an update in the ‘Broker limit reached’ column for certain (or all) securities in the google sheet?

Also how frequently is the sheet updated? Getting to understand from the discussion on the thread that it’s not always reliable (at least the broker limit reached column).

Also, a suggestion- instead of a binary yes/no value in the Broker Limit Reached column, if the team can share what percentage of the member level pledging limit a certain security has reached, will help traders plan better and make purchases accordingly. CC: @nithin

Let me speak to our team on this.

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