Pledge gSec / maturity?

F&O
1

Is it possible to meet margin requirements for Option Writing by pledging GSECs (GOI dated bonds or T-bills) ?? does Unpledge happens automatically at maturity ?

@ShubhS9

2

T-Bills cannot be pledged. You can pledge G-Secs, these are considered as cash equivalent and the margin received can be used for option writing. You can check the list of all the securities available for pledging here.

Yes, the pledged G-Secs will be unpledged 30 days before the maturity. You will receive an email notification from us when the pledged G-Secs are nearing maturity.

3

Thanks @ShubhS9 for quick reply.

I have heard that GOI bonds can be sold in the secondary markets before maturity? where can I sell them in Zerodha ?

4

You can sell them on Kite itself just like stocks. However, liquidity in the secondary markets is on the lower side.

5

Thanks @ShubhS9… but similar to stocks how do I add the same on kite dashboard / watchlist… for eg… how do I even find GOI 6.69% - 2024 - IN0020220052 ?

6

You can search for “669GS2024”. The nomenclature of G-Secs works as below;

6.69% - Interest Rate
GS - Government Security
2024 - Maturity

You can learn more about G-Secs here:

1 Like
7

Hi @ShubhS9, Is there any reason why G-secs are unpledged 30 days before maturity? Why can’t it be unpledged couple of days before maturity?