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

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?

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.

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

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.

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

From 1st July 2020, have you checked this?

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


@HSL Yes.

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

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 ?

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!

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

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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 …

We’ll let you know when there’s an update. Stop spamming or we’ll be forced to suspend your account! This is probably the last time we’ll say this

Dude. Taking loan against liquidbees also same as pledging. You can not pledge same underlying two times. Even if you do that is risk for both parties taken as collateral.its a loop.(oyo promoter case). Even pledged units in your demat account after July month, brokers make sure those units locked or invisible to you till unpledge. Focus your time on something else.

Pledging for loan to NBFC or bank requires moving out Your stock from your demat account which your broker will not allow.

Could you tell what it was or share a link about this.

1)Any user using LIQUIDBEES as collateral to trade intraday Equity & overnight forex,commodity futures -
since actual cah is not there what is the interest rate charged by Zerodha?
2) Liquidbees gives you what returns (i heard additional units being added in to account )?
3) with LIquidbees collateral (& no cash )can i buy & sell nifty call or put options intraday? (debit on buying option first & credit on selling intraday ?
4) Iam thinking of using the current ₹10L balance at zerodha in EQ & ₹5 L for commodity in to liquidbees. ( as a senior I was getting 7.5% per annum till recently - next month 6% max including senior rate )
5) what is the average monthly return in LIQUIDBEES recently (on annualized terms )
Thanks

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@siva can mutual fund get colateral for margin . I have motilal multicap 35 cap can i used as colateral?

Not possible for now, as of now only liquid funds are allowed.