Collateral for SGB bonds

Why Zerodha does not give collateral against SGB bonds?

As per NSE

SGB is listed for collateral.

Please confirm.

There is no liquidity in the markets for SGB bonds. Disposing it off isn’t easy if there was a need to liquidate.

Thanks Nithin for the info.

Will it be possible to provide a bank FD ( or similar products by tieing up with a bank) or similar products (eg corporate FD) through Zerodha and provide collateral against?


We have checked for this, not possible. We will soon accepting mutual funds as pledge, maybe you can select a debt fund if you don’t want it to be in liquidbees.

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Following eagerly. Please start MF pledging soon.

Hello Nithin … Do Zerodha now accept Bharat Bond ( Edelweiss Bharat Bond ETF) as Collateral Margin and do you consider it same as liquidbees i.e 100% Margin !!

The list of approved securities is here.
Search with the ISIN on this list. Bharat Bond doesn’t form part of the cash component.

@ShubhS9 hai , i have a doubt , if i buy sovereign gold bond through market example from kite , i am eligible to get a 2.5% interest , why i trying to buy through market , zerodha will provide colleterial upto the 4 tranch July one

Yes, when you buy SGB through the secondary market, you are eligible for interest of 2.5%. And yes, SGB up to those issued in July are available for pledging, you can check the list here.

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