How does pledging of FD for F&O margin work

[VenuMadhav]

@curiousvi

easiest is only used for trusted account transfer

easiest allows both trusted account & account of choice transfers

@curiousvi

so if we choose to that option and create pledge it still goes to trusted account of our choice

You can pledge to a broker if you have an arrangement with the broker that he’s going to give you margins against such pleldge, at Zerodha we don’t. We pledge all securities to Clearing Corporation after moving them from the client’s demat account to our collateral account (collateral account is permitted by the Exchanges to be opened for this specific purpose)

@curiousvi

how do I know whether broker actually pledge that with NSCCL or not?

Choose the right broker

@curiousvi

or he can pledge to NBFC instead of NSCCL

After the Karvy episode, SEBI has barred brokers from pledging client securities with NBFCs.