Margin collateral query

Bear with me, there are 4 short questions. Any help will be highly appreciated.

If I pledge a stipulated liquid fund as collateral for margin then:

  1. Would I continue to earn returns on this investment if I pledge the fund as a collateral?

  2. If I do continue to earn returns, then would these returns be accounted while providing margin in the future i.e. if on an investment of Rs 100,000 I earn 10% return through the fund, would the margin I receive then be Rs 110,000 - 10% haircut = Rs 99000?

  3. Also, can I pledge the liquid funds mentioned in ETFs and Mutual Funds in this sheet by Zerodha as collaterals for margin?

  4. Will I be required to keep 50% of the margin in an FnO trade in cash if I pledge these liquid funds?

Yes, you continue to earn returns on your pledged securities.

Margin has already been alloted to you, so I don’t think this can be done. You can unpledge and repledge the shares if you want extra margin on those shares.

Yes you can pledge any security mentioned in that list.

Liquid ETF’s and Liquid MF’s are considered as cash equivalent.

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Thank you for the response :slight_smile: