Best cash component collateral for option selling setup?

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,

  1. Will the cash component list be expanded to accommodate the migration? (ie) possible inclusion of bharat bonds, etc.

  2. What are some good cash component instruments which provide a return of 5-6%

  3. 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.

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