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. 
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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
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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The member-wise limit is revised by the clearing corporation periodically, so the percentage utilization may always not be accurate. Also, there’s no guarantee that buying securities where member-wise limit isn’t breached will mean you can pledge them. It takes a day from the date of purchase for the securities to hit your demat account, and in the interim if other clients pledge, your pledge request for the shares you’ve bought may not go through.
There are no member-wise limit on Nifty 50 stocks & the following ETFs (also form part of the cash component). There are no restrictions on the number of units you can pledge:
|GILT5YBEES|INF204KC1030|
|ICICILIQ|INF109KC1KT9|
|LIQUIDBEES|INF732E01037|
|LIQUIDETF|INF740KA1EU7|
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Bumping this conversation up to gather a little more clarity on how the member level pledge limit works. To add context, I have some MOM100 etf units which I wish to pledge. It has been almost a year now, and I keep getting the same ‘member level limit reached’ message on console.
Understanding that the clearing corporation refreshes the limits monthly, have also been trying to get the pledge request through during the first few days of the month since Apr’23, without success.
It doesn’t make sense, right? Does this mean, of all the people who have pledged the said security through zerodha, no one has unpledged/ liquidated the pledge over all these months? I understand that there may be people who might be ahead of me in the pledge queue, but the request should go through on T+0 anyway right? (Only to be rejected later once the limit is again reached when clients ahead of me in the queue verify the pledge)
Just to satisfy my curiosity, will it be possible for the team to share the date when a pledge for the above security was last approved on console?
Hi @nithin - please do consider the above concern if you feel a significant enough set of users will be facing the same problem. And moreover, what can be the reason for MID150BEES to have no broker pledge limit at the same time?
I’d hate to sell all the accumulated qty and buy another set of ETF that’s almost similar just to be able to pledge it. There also has to be a mechanism to nudge the relevant authorities to such observations, if it’s just due to an oversight. Happy to have my views realigned with your opinion on this. Thanks!