Liquidbees as collateral

This question is not generally for Zerodha but it may apply to any broker.

Let us say that someone have pledged 100 liquidbees and now these liquidbees are not present in their demat account.

If in future let’s say the database gets corrupted or broker shuts their service, how can someone prove the quantity of liquidbees pledged by them as no mail regarding the same is sent? Is this data present with CSDL?

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Your holding statement will have a debit entry with the demat number to which the units were moved on account of the pledge.

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Agree…I have the Same view too…Atleast the broker should send a mail giving details of instruments pledged,date etc…

@ zerodha : can u pls reply : what do the client has any proof that the shares securities transferred is for the pledge mortgage lien . i.e. they must be returned back to the client .

Pls also clarify after the pledge ; if there is any dividend bonus etc ; how will the client come to know ? I mean if the broker is honest ; the broker will inform pass it on to the client. But if the broker is not so honest ; then ???

No, I won’t.

I got email from BSE

With subject

Details of your fund balance and securities balance as on 31/12/2019 with Trading member ZERODHA BROKING LTD. (Clg. No. 6498 ).

This had all the securities i had pledged.

  • As someone’s said earlier, when brokers transfer shares, the account to which the shares are transferred is known. SEBI has restricted the number of accounts that a broker can open - he can debit stocks either to meet the clients’ delivery obligation or for the sake of margins. A broker is required to report the details of bank account and demat accounts that he’s opened to the Exchange, so at all point of time, one would know the purpose of transfer.

  • All brokers are required to upload details of client holdings and funds to the Exchanges on a monthly basis after which the Exchange sends an SMS to the client intimating the fund balance and security balance. Please check this and ensure that its in line with what you expect it to be.

  • On Console, under the holdings page, we show details of stocks pledged for F&O margin, you could also use this for reconciling.

This is why its extremely important to choose the right broker especially if you’re not a savvy investor.


Has the Liquidbees haircut increased to 14%?
If yes then it is for some time or permanent?

Don’t think so, where you have seen this?

Sorry, it was Niftybees.
Yesterday i pledged niftybees and the haircut was 14%

That is normal, I think. These are more volatile and risky compared to liquidbees.

Does the process of pledging liquidbees same as stocks through console and for liquid funds too.


after pledging the liquidbees ; can I take f&o delivery NRML trades (BTST/STBT) with that amount ; without attracting the interest/margin/penalty ?

With collateral, you can only Buy/Short futures and Short Options.

yes . that’s what I ask : after pledging the liquidbees ; can I take f&o delivery NRML trades (BTST/STBT) with that amount ; without attracting the interest/margin/penalty ?

You can take, no penalty.