Can a broker earn from client's stocks and cash collateral

Suppose I have 1000 shares of reliance and 1000 shares of liquidbees or sgb (essential cash component) and I have pledged them to get collateral margin

Can a broker use these pledged securities for any type of gain?

I understand broker can earn a float income (interest on idle cash in client’s accounts) but what if client has no cash but have cash equivalent like sgb/govt bonds or stocks like HAL or reliance ?

@cvs @Akash_Shah @viswaram @t7support @rupeshmandal @VijayNair @manas111

1 Like

no

yes.

Nothing.