Can mutual fund be used as collateral for derivative trading

Trading
1

can mutual fund be used for collateral for derivative trading . for example .
for example MF in fundsindia be used as for derivative trading in icicidirect?
or MF in icicidirect be used for icicidirect derivative trading ?

2

Yes, you can pledge Mutual Fund’s you hold and get margin to trade in F&O.

This you cannot do.

This you can do.

3

thanks for reply . what is the criteria . mutual funds and f & O to be in same asset mgmt co . for ex zerodha / icici/ zerodha ?

4

You should be holding Mutual Funds in Demat account of the broker you want to pledge with.

ex. if you want to pledge Mutual Funds for margin for trading with Zerodha, you should be holding those in your Demat account with Zerodha.

5

How do we pledge mutual fund units held in Demat for FnO trading on ICICI direct ? Is there a list of mutual funds with haircut available for icici direct ?

6

Yes, they will have the list, you will have to check with them.

7

Hi @ShubhS9 ,

This means Mutual Funds purchased via Coin right ?

8

Yes.

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9

Can we use equity mutual funds in Coin to avail collateral margin? till recent past, it was limited to ETF and Liquid funds only. Anyone?

10

You can pledge Equity Mutual Fund’s as well, you can check the list of approved securities here.

2 Likes
11

Thanks Buddy. This shall Help a lot. I’ve close to 30 Lac of direct equity MFs with different MF AMCs. Will shift that to Coin if that’s the case as Im into Options writing. Which shall be the best move to move MFs to Coin: Redemption and rebuying in Coin or raising hard-copy requests for Demat conversions? If you could guide? TIA

12

You can do any of the following. either redeem and start afresh on Coin or you can convert your Mutual Funds’s in physical form to Demat form, the process is explained here.

13

@ShubhS9 @siva

Any idea why Index funds are not available for pledging even in the Master List of Zerodha or NSE

For example : UTI NIFTY INDEX FUND ,UTI NIFTY NEXT 50 INDEX FUND

14

why ETFs have hardly any volume liquidity ?

1 Like
15

The list is given by clearing corporation, we can only get margins on those which are in list.If they added your list of scrips then we can also add them.

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16

I un pledg my holding of liquid bees, but shares not received in my account

1 Like
18

It is mentioned in approved list of securities.

After placing the pledge request (before 2 PM and 5 PM) and confirming it with CDSL (before 7 PM), you will receive the margin the next day.

20

@ShubhS9 I didn’t get the margin. Do customer get failure mail or sms ? Because I have done twice now.

21

@Nakul Can you check.

22

The pledge won’t be set up for these units if it’s under lockin. We’ve removed these securities from being pledged now.