The talk of the town being SEBI imposing the 50:50 margin rule will trickle down to brokers eventually forcing clients to have sufficient cash / cash equivalent margin.
The popular method of buying Bharat bond etf and pledging it worked with most brokers. This provided a 5 to 6% return annually. Now that the shift is imminent,
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Will the cash component list be expanded to accommodate the migration? (ie) possible inclusion of bharat bonds, etc.
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What are some good cash component instruments which provide a return of 5-6%
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Is it better to maintain cash, as the return you’ll make by utilising 100% cash would compensate the return you’ll make with your 90% haircut collateral.
What are your thoughts? How are you planning to handle this.