Only the ISINs mentioned above can be pledged for margins.
Letâs say I have pledged stock and/or mutual fund holdings for collateral margin with a broker. Can this broker further pledge these holdings that are not fully utilized for margin.
In other words, there are cases (though it is not legal) where a broker utilizes underutilized client funds (cash) for his/her own proprietary trading. Can a broker do the same with underutilized pledged units of mutual funds/shares?
Yes, a broker is allowed to move these securities to the Clearing member or pledge them with the Clearing Corporation. Having said that, there are strict regulations that prohibit a broker from allowing one client to trade with another clientâs collateral margins. Same goes for prop, a broker canât use the margins raised from clientâs securities to trade in the prop account. All brokers are required to upload to the Exchanges a bunch of details every week that helps them determine if a broker is mis-utilizing funds. Read more here: BSE enhances supervisory framework for stock brokers - The Economic Times
I bought liquid fund on 25-Sep in Coin. It was allocated yesterday in Coin. Today its showing in Kite Web holdings (mutual fund). But its still not showing in Console (Web) portfolio (mutual fund).
Already raised a ticket in the morning but no response yet.
it is showing after two daysin console from reflecting from your holding in kite
So charges will be once only or like if I use it for nifty option writing, everytime I cover my trade and to take new trade do I have to pledge it again?( Again 65 charges)
( Sorry I know very novice questions) but please can u please clear it
Only one time. It can stay that way as long as you want, no charges for un-pledging. If you unpledge and want to pledge again the same then also charges are applied.
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1.If I am pledging some stocks of a company and adding more stocks after pledging . Do i have to pledge again for more margin ?
2.if i am keeping 50 % of capital in stocks and remaining in liquid funds and pledging both . Can i hold overnight positions without any extra charges ?
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Can you tell me which liquid fund ?
Axis liquid fund.
Hi !
I did not quite understand :slight_smile 1. exactly which ISINs are eligible for Margins 2. Are Gold bonds also eligible 3. how do i buy GSEC?
axis liquid fund
birla liquid fund
franklin liquid fund
reliance liquid fund
hdfc liquid fund , these fund are available for margin , go to coin and buy
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Is this all good ?
In liquid fund space Birla liquid fund is good one in portfolio and returns , Birla hold 200+ securities and returns are 7.36%
What is maximum drawdown a liquid debt fund can face or has faced? If I look at its equity curve, itâs upwards slope with no pullbacks.
I have bought ABCL Liquid fund on 3rd. The same is not available in console for pledging.
Support is saying it can not be pledged. This is bad situation and my money is blocked.
Service req no 20191005646555
Only the following ISINs can be pledged for now:
There were a couple of liquid funds by Union and LIC, if I remember correctly which fell about 2-3% during the IL&FS crisis. A handy rule of thumb when it comes to investing in a liquid funds is always choose a fund which has the highest AUM. These funds are extremely diversified which reduces the impact of defaults, which are highly unlikely in well managed funds.
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Based my experience, the timeline for liquid fund is
- Buy fund on day T before 1.30 PM
- Fund is allocated on day T+1. It appears in COIN and portfolio on Kite on day T+1 by afternoon. But it does not appear in console.
- It appears in Console portfolio on T+2. You can pledge it only after this.
The delay in availability of this fund in Console portfolio is bit strange, but not sure if Zerodha will do anything about it. I believe updating of Console data is done at night??
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