Liquid Bees pledging/ unpledging questions

General
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(1) How much time does it take to pledge/ unpledge Liquid Bees? Is it possible to release the pledge on the same day so I can sell Liquid Bees and buy shares (delivery)?

(2) Can margin on Liquid Bees be used to buy shares (delivery) or only for Futures?

(3) How much interest is charged on margin provided by pledging Liquid Bees?

(4) How do you keep a track of the benefits like dividend from Liquid Bees pledged?

(5) Can my family member transfer Liquid Bees to my demat account and I pledge them if I do not own them but have borrowed them from my family member?

(6) Do any answers above change if I were to pledge a liquid, blue chip security instead of Liquid Bees?

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If you’re trading with Zerodha, here are answers to your queries:

  1. It takes 24 hours each to create the pledge & unpledge. It wouldn’t be possible to request for an unpledge & sell the stock on the same day

  2. Any margins raised by pledging can be used only for trading in the Equity Futures & Options segment

  3. No interest is charged, pledge creation charges are Rs.60/scrip regardless of the quantity.

  4. The dividend is transferred to your demat account on a monthly basis.

  5. Yes.

  6. No

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[quote=“VM1, post:2, topic:920”]
sell the stock on the same day

  1. Any margins raised by pledging can be used only for trading in the Equity Futures & Options segment
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Q1- If i pledge liquid bees then for how many days I can use that amount for trading intraday before unpledging it.

Q2- Can I trade index future and options using margins raised by pledging?

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A1. You can trade F&O intraday/carry forward till the time you’ve pledged the stocks with us. Once you unpledge, your margins reduce.
A2. Yes, you can. Buying options isn’t allowed, Futures buying/shorting & Option shorting is allowed.

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Can I use liquidbees margin for doing short call spread? It requires both buying an option and selling an option, but there is a net credit.?

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No, you can’t use liquid bees margins to buy options. You can use the margins only to short options.

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I bought liquidbees yesterday. When will i be able to pledge it ? it is showing under my holdings in console but i don’t see an option for pledging when clicking on the options tab.

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You will only be able to pledge once Liquid Bees are credited to your Demat account, the credit of shares happens on T+2 days.

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@ShubhS9, the cut-off timing for unpledge (2 pm) is applicable for all holdings including debt funds (liquid, overnight) as well, right?

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Yes, the cut-off time for unpledging is for all securities.

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If I have pledged 15lacs of liquid bees and kept 1 lac cash with my broker for intraday option selling. If my broker goes bankrupt or commits fraud, what happens to my pledged holdings and 1 lac cash?

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@siva @VenuMadhav @nithin If I have pledged 15lacs of liquid bees and kept 1 lac cash with my broker for intraday option selling. If my broker goes bankrupt or commits fraud, what happens to my pledged holdings and 1 lac cash? Someone please reply

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Check this post

In the new pledging mechanism, the stocks will remain in your demat account. So nothing happens if your broker goes bankrupt, you will continue to hold the stocks. Your positions might get closed out if a broker terminal gets blocked by exchanges.

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