I am unable to pledge gilt funds for margin, is it not allowed by Zerodha yet? because it is showing in the spreadsheet under cash component head.
Can you check and mention the exact name of the fund?
eg. “SBI Magnum GILT Fund Regular Growth” will be a different ISIN when compared to “SBI Magnum GILT Fund Direct Growth” (btw, the SBI Magnum GILT Direct growth is not in the Exchange provided list, so Zerodha cannot help is such case)
In my case i wanted to pledge “Nippon India Money Market Fund Direct Growth” but the Zerodha list contains only “NIPPON INDIA MONEY MARKET FUND - DIRECT PLAN MONTHLY DIVIDEND PLAN REINVESTMENT”, while Exchange provided list contains both
I have requested @Nakul to add more MFs from the exchange approved list under the eligible securities
exchange provided list is in the following comment Migration from old pledge to the new pledge mechanism
Let’s say I buy and pledge
NIPPON INDIA GILT SECURITIES FUND - DIRECT GROWTH PLAN GROWTH OPTION - GROWTH with ISIN
Will this really be considered as Cash Component? Can we use the full margin received for Option Selling (without additional interest). Just as in the case of LiquidBees.
There is a doubt because this fund is not a Liquid Fund, rather a GILT fund.
Gilt Funds are considered as cash component and you can utilise the margin for taking Short position in Options without additional interest, just like Liquid Bees.