Gilt Fund for Collateral


Why are Gilt funds not included in the “Approved List of Securities” for collateral. There are only 7 MFs that can be pledged now. Will Gilt Funds (like “HDFC Gilt Fund - Direct Plan”) be added in future?

We’ll will down the line. For now, you can only pledge liquid funds.

Even one year down the line, we are yet to see the above promise fructify.

Gilt Funds are now available for pledging, you can check the list here.

Thank You Mr. Subham. I am attaching a screen shot of the portfolio depicting the status of SBI Magnum Gilt Fund that I have invested in along with ICICI Prudential Gilt Fund. The ICICI Pru now has an option to pledge ( earlier it was absent), whereas SBI Magnum- the status quo remains-no pledging option. Why so ?

Currently the Direct Plan of SBI Magnum Guilt Fund is not yet part of approved securities.

The total quantity of each approved security that can be pledged is limited at the trading member level by the clearing corporation. You will not be able to pledge your holding if the overall maximum pledge limit has been reached for stock/ETF you are trying to pledge.

These are decided by Clearing Corporation, you can check this circular which includes limits on all securitues.

There are no alternatives to this.

@ShubhS9, is there any way to know if the limit has been breached beforehand? I want to invest in one of the funds (cash component) only for the purpose of pledging. If I invest somewhere and it turns out you can’t pledge it, then I’ll have to redeem it & then find another fund to pledge, again without any guarantee that it’ll get pledged or not…


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@nithin, can anything be done regarding the above? I’d asked about the member limit wrt liquid funds some months back…

…and while limit here might be fine, the returns have been abysmal the past few months. So, want to shift the funds.
Specifically, is there any restriction wrt to pledging these two funds:
a) HDFC Money Market Fund (direct, growth)
b) ICICI Money Market Fund (direct growth)

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Unable to pledge SBI Magnum Guilt Fund though now its reflecting as part of approved securities.
Can you pls help here ?

Mahesh, currently only Regular Plans of this Mutual Fund can be pledged, you’ll be able to pledge Direct Plans when approved by Clearing Corporation.

how to get this done “clearing corporation”.
So you mean i cant pledge sbi gilt fund right at this moment ?
Is there any other gilt direct fund available for pledging option where i can invest and pledge via zerodha. Kindly help on the same.

Direct Plans of HDFC and ICICI Prudential Gilt funds are available for pledging. You can check this list.

Thanks for your reply. Will consider buying Direct Plans of HDFC and ICICI Prudential Gilt funds for pledging.

I had a doubt about the liquidity of the gilt mutual funds. If I have invested a crore in debt funds like the SBI magnum gilt fund, at any given point if I want to exit, How do I check how much value of investments can be liquidated at once? To give context, I am working on allocating my capital to different funds to add as collateral, like 30 % in equity, 50% to goi Bonds, and 20 percent to liquid bees, But as goi bonds are not liquid I am looking to put that 50% in gilt funds. Thanks in advance.