hai bhuvanesh i already pledged its cash component only . i pledged liquid fund , you are not updated z-support page
please send a circular about that , because i call backoffice and raise a ticket no one in zerodha does in have a knowledge about mutual fund pledging please release a circular
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@VenuMadhav Can you list money market funds which are allowed for pledging? Will money market funds considered as cash component?
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yes sandeep , liquid fund returns will go down now because RBI will cut rate , we need alternate source like ultra short and moneymarket
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Sorry for the confusion, Liquid funds like Liquid ETFs are considered part of the Cash component. NSE provides a list of approved securities every month, here’s the link: https://archives.nseindia.com/content/circulars/CMPT42186.zip
Yes, while money market funds do form part of the cash component, the only MFs being considered now are the ones I’ve listed above here:
So liquid funds are as good as cash right just like liquidbees?
Is this feature (liquid funds as collateral margin) really live, or is it still beta-version? It is very strange that there is no official announcement from Zerodha! Or have I missed the announcement?
The list from NSE shows large number of liquid funds, but the list sent above has only 5-6 funds.
Can Zerodha please do an official announcement and inform about all the finer details?
Yes.
It’s live.
For now, we’ve restricted it to the top 6 funds only.
Thank you. This should be a useful feature. But still, why no official announcement? 
Just to summarize my understanding,
- I buy liquid mutual funds (from the list you specified above) in COIN on day ‘T’.
- It will show up in CONSOLE on day ‘T+1’.
- I can pledge these units (with a charge of Rs 65+GST) in console and use it as collateral margin from day ‘T+2’.
- It is just like cash with 90% haircut. So even for overnight positions I can use these fully as margin.
Is my understanding correct?
Thank you again.
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@VenuMadhav
As far as I know about pledging stocks, only 50% of margin can be utilized from pledged stocks and remaing 50% of the margin needs to be cash.
Is it same for liquid funds as well?
I mean if i pledge liquid funds and i get Rs. 5,00,000/- as margin and if i trade in futures where margin required is Rs.2,00,000/-, do i need to bring in 50% of Rs.2,00,000/- (i.e. Rs.1,00,000/-) as cash or out of the Rs.5,00,000/- margin available it will block Rs.2,00,000/- and i need not bring and cash for trading in this case.
please clearify with regards to the above example.
thank you.
You’re right!
We’ll announce once the entire NSE list becomes pledge-able 
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You can take position with 100% stock margin, just that you’ve to pay interest for the shortage in cash.
Liquid funds are considered part of the cash component, If you’ve pledged only Lbees, there’s no requirement to keep cash separately.
Since it’s all Liquid funds, there’s no need to bring in cash separately.
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sir , i invested some equity fund those also will be pledgable in near future , its possible
No, not in the near future.
Dear @VenuMadhav,
one silly question . when the liquid fund value increasing day by day our collateral margin will also increased or not
I have brought one debt and one equity fund before 2 days , but it’s not available in console to pledge ? Please see my attached screenshot.
these fund you cannot pledge- franklin ultra short term fund is very good fund but they are not allow to pledge this fund
There are no silly questions the way collateral margins are updated is (fund_value*no_of_units) - applicable haircut%. If the fund value goes up, your collateral margins do go up.
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