Approved List of Securities for Collateral(Column query)

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!

The limit for MOM100 in FNO segment is 76576 units. This translates to a meager value of 29,16,779.84 (sub 30L). For a broker of our size, it’s not surprising at all that we’ve breached this limit and continue to remain breached. For all you know, the quantity can be breached by pledge received from one client.

I don’t see any distinct benefit of showing this data. You can’t plan or time your pledge quantity based of this info. It’s better you pledge units of MFs for which limits are available.

I’ve sought clarification from NCL as to why there’s a difference in the treatment to these 2 ETFs since the constituents in these 2 instruments are more or less the same. I’ll update here once I receive a revert.

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While I did not get a conclusive answer, I was given to understand that the basis of how memberwise limit is decided is by applying an internal policy at the clearing corporation. There’s weight-age given to the impact cost based on the last six months order book. The quantity set is also dependent on the average traded quantity, so if there are volumes in an ETS are lesser, the lesser will be the memberwise limit. This is because in the worst case, the securities will have to be liquidated in the secondary market, so the above factors are taken into account.

Trust this is useful. As stated previously, please look at pledging securities for which limits are available.

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:pray: :pray: :pray: :pray:

Hi @VenuMadhav - In the Approved Securities List for the Month of August 2023 sheet, all securities with ‘Broker Limit not applicable’ status have now been updated with a Yes/No value.
Does this mean that there is now a broker level limit across securities? Is yes, would it be possible to share security-wise what % of limit has been reached?

Any update on this Zerodha? Can there be an interface on this which is updated in realtime, so that pledge is not rejected after one buys a security?