Collateral for SGB bonds

General
1

Why Zerodha does not give collateral against SGB bonds?

As per NSE
http://feeds.feedburner.com/nseindia/FODailyReport

http://feedproxy.google.com/~r/nseindia/FODailyReport/~3/eJeMG83pbts/APPSEC_COLLVAL_01102018.csv

SGB is listed for collateral.

Please confirm.

2

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

3

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?

BR

4

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.

1 Like
5

Following eagerly. Please start MF pledging soon.

6

@nithin
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 !!

7

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

8

@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

9

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.

1 Like