Intraday margin from pledging

When we pledge mutual funds with zerodha, the sebi rule states that we need 50 % cash and 50% margin to carry FO position overnight. What is the rule for intraday ? Can we use full margin received from pledging for intraday ?

You can use full pledged margin for Intraday, there is no 50:50 Cash - Collateral requirment for Intraday. Keep in mind though this margin cannot be used to buy Options, can use it only for Intraday Equity, Trading Futures and Shorting Options.

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If 50:50 cash/collateral rule is not applicable for intraday equity why my cash balance is decreasing (despite having sufficient collateral) when I place intra day buy/sell orders?

Could you try reducing your cash to minimum and then placing trades … maybe software is set to use available cash first.