Liquidbees Pledging

@ShubhS9 - I am trying out pledging Liquidbees in zerodha - So bought 1 unit of Liquid bees and it is in my holdings - but the options drop down does not display pledge/unpledge - Is it bcos of minimum amount restrictions ( after haircut the amount shld at least > 1000)

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You will have to pledge it from Holdings in Console. Goto Console > Portfolio > Holdings.

Also if you bought Liquid Bees yesterday you will have to wait until units are delivered to your Demat account.

Yesterday it was in positions and now it is in holdings (means it is in demat account rt?) - And I tried it in web Console > Portfolio > Holdings - but on the options drop-down - I get options like View Dividends, View breakdown statement etc but no pledge/unpledge options. Pls advice.

It takes two days for units to get credited to your Demat account. You will be able to pledge on Monday.

I hope you are aware of pledging charges which are 60 (+GST), It isn’t worth it to pledge just 1 unit.

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Even though it is in Holdings still the T+2 is not completed.

Yes aware of the 60/- per scrip pledge but was only trying out the working and will do the actual pledging for 1 unit. But thanks for the info🙂

And also after pledging how long does it take to realize the margin in zerodha?

The settlement process takes T+2 days, the same as when you buy stocks.

If you put in a pledge request before 4 PM, the margin will be available the next day. If you put a request after 4 PM, it will be processed the next day and margin will be credited the day after.

@ShubhS9 - One more question is the Liquidbees scrip different for NSE & BSE and the 60/- per scrip will be applied for both individually (60+60=120).
Also is there any risk of buying Liquidbees in BSE bcos trading volume is lower compared to NSE.
Pls advice

Both are the same and once shares are in your Demat they don’t have exchange assigned to them so there won’t be any extra charges.

No risks.

I have pledged liquidbees and the process asked for cdsl pin entry - But I see no status nor I have received any mail for pledge request.
I did the pledge request before 4pm so I should see the Liquidbees margin in the funds section tomorrow rt ? (is this the only way to validate the pledge request success)

Yes, you will see collateral margin in funds tomorrow.

@ShubhS9 - One more question on pledging - is the new rules from SEBI wrt pledging effective from Aug already implemented in Zerodha - I entered my CDSL TPIN for the pledging request.

Will update you in a day or two.

Any updates?

@ShubhS9 - Can Bharat bonds be pledged - and what is the hair cut percentage?
What is the mode of returns in Bharat bonds - is it dividend based like liquid bees?

Yes, Bharat Bond Series I can be pledged, series II you cannot pledge as of now.

No, it isn’t dividend based like Liquid Bees,

So only the EBBETF0423 - maturity 2025 - is that series 1 that can be pledged?

Also what is the haircut percentage?

Also if no dividends then unit price appreciation is mode of returns?

EBBETF0423 and EBBETF0430 are available for pledging. The Haircut value is 10% for both.


@ShubhS9 - I see my pledged scrips in my CDSL account (but eCAS report has pledged dates with Zerodha dp id with no debit quantity) - so does that mean it is not pledged with the broker and it is pledged on behalf of my account directly with the exchange.

The question finally is whether the scrips are safe from broker defaults & and cannot be sold by broker :slightly_smiling_face:

Under the new pledge mechanism, the securities you pledge stay in your demat account, with pledge marked against them. This post explains it in detail.