I pledge stocks and use margin on it to trade F&O. How will interest charge be calculated?

General
56

As Zerodha Charges 0.05% per day, for 1L cash margin, it costs 50 Rs per day. Per month, 1L margin, it costs 1500. Is it correct?

57

Is same rule applied to NIFTYBEES as well i.e. NIFTYBEES are also cash equivalent no 50% rule applicable?

58

How to pledge liquid mutual fund? I have purchased liquid funds through coin.

59

At the bottom of the spreadsheet showing the approved list of securities for pledging,

there’s a point under ‘Notes’ saying

“The benefit for the above securities are subject to the Overall limit. Member-wise limit and Liquid Asset Limit as stated in the Circular Ref. No.NSE/CMPT/19572. Dated December-13-2011.”

What does this mean? Is there some limitation regarding the amount which can be pledged? Mainly interested wrt liquid fund here.
@VenuMadhav

60

There is a member wise limit on how much of a particular stock can be pledged. It shouldn’t matter as we are nowhere near the limit on any scrip, including liquid funds.

61

Hello,

Could you please clarify how to pledge liquid mutual funds ?

Thanks,

Sahil

1 Like
62

You can check this, for more you can create ticket there itself.

1 Like
63

Hi Nithin,
I have zerodha account. In below hypothetical situation,
Suppose if I pledge rs 1lac shares and got margin as 90000 , I also pledge liquid funds worth 90000 , but I do not have any cash in my account. Suppose I wrote options which need 1.8 lac MTM margin by EOD… Will any interest be charged to me? Will I need to fund my account with cash to avoid interest?

64

Not required in this case as 50% is maintained in cash and 50% in collateral, liquid funds collateral is treated as cash equivalent. But maintain some excess cash because slight increase in margins will result interest penalty.

1 Like
65

after pledging my liquidbess for margin can i use that same liquidbess for getting loan from other financial institutions (Banks & NBFCs) ?

66

Once you pledge the LiquidBees, it moves out of your demat account. So you won’t be able to pledge again to avail the loan.

1 Like
67

but , as per the new sebi norms ; after the pledging also ; the securities , stays with the client demat only !
am I right ?

68

From 1st July 2020, have you checked this?

1 Like
69

so , from the july onwards ; after the pledging also ; the securities , stays with the client demat only !
am I right ?

70

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@HSL Yes.

71

can you pls give your reply ; post july onwards what is it like …… ?

72

so , from the july onwards ; after the pledging also ; the securities , stays with the client demat only ! .

So , after july ; Once the client pledge the LiquidBees, it will not move out of the client’s demat account. So the client will be able to pledge again to avail the loan !

am I right ?

73

Do you even have a trading account? We won’t answer your unnecessary, ill-formatted spammy questions anymore! You’re just creating a nuisance on the forum! We’ll henceforth delete all your pointless questions, we’ve had enough of this!

2 Likes
74

@HSL Above gouda answered twice to this question, again you are asking the same, how this can be justified???

1 Like
75

NO.
Gauda said : "Once you pledge the LiquidBees, it moves out of your demat account. So you won’t be able to pledge again to avail the loan. "

But my question was : " after july ; as per the sebi ; stocks will not move out the demat . So can we be able to pledge again to avail loan?"

Pls read fully before u reply …