In the new margin pledge system, the securities will remain in your demat account, so you are eligible for all the corporate actions and the interest payment will get credited in your primary bank account mapped with your demat account.
Check this Z-connect article to know more about the new margin pledge system.
Thanks @viswaram @Aswath for the quick replies!!
Are there any potential downsides to buying GOI bonds and pledging them for Cash margin?
Have read a lot about Stocks, Etfs, Liquidbees pledging but not much about goi bonds pledging…
Only downside in bonds is that the interest paid out half yearly attracts income tax
Whereas for liquid funds, the nav is growing cumulatively and tax is paid on redemption.
If bonds give 8% returns and liquid funds 5% then even after paying tax bonds still fare better
Currently, SDLs are not approved for margin pledge by the clearing corporation. You’ll only be able to pledge the securities mentioned in this list
I am thinking of pledging a 91 day T bill to get a cash equivalent margin to write options. If I din’t unpledge before maturity, as the GSec has to get debited from the demat on maturity, what does Zerodha do?
T-Bills are not a part of the approved list of securities that you can pledge.
T-Bills cannot be pledged. Suppose you’ve pledged G secs for collateral margin, 30 days before maturity, we’ll unpledge and send you an email informing you that the pledged G securities are nearing maturity.
@nithin_kumrr That was my follow-up question, thanks for your response! So I understand that Zerodha will automatically unpledge the G-sec and inform me. So, I don’t need to keep track of the unpledging timeline. This could create a debit balance/ margin call as the G-sec could be used as margin on some option positions, right?
Yes, since the collateral is unpledged, you need to bring cash or pledge other securities. While this happens at the end of the day, you will have time till the next morning to bring the necessary margin.
Does cdslindia website works today?. No email from cdsl regarding pledge and unpledge requests.
Hi @A_K_RAGHAVENDRAN, due to intermittent issues at the depository (CDSL), pledge and unpledge requests are not processed today. These requests will be processed on Monday, November 21, 2022. You can keep track of Bulletin for updates.
Reading all I could here and on other sources, I had purchased 7.54% GS 2036 (754GS2036-GS) in Sep 2022 through Coin and pledged them for Margin few days later…
The 1st credit of half yearly Interest was supposed to come on 23rd Nov, but it hasn’t come in yet…
I was not expecting GOI/RBI to delay interest payment 
Am I missing something here with respect to Interest Payment on pledged GOI securities?
So for intraday option writing, one can pledge shares and write options without cash component?
Is this still valid?
Yes, for intraday trades you can still use 100% collateral margin.
Hello shubhS9,
I own SBI nifty 50 etf after I pledge them with a haircut of 6%. Is there a possibility that during a crisis like Covid or 2008 crisis, the haircut might get pushed to 50%, 75%, or even 100%.
Also once I have pledged and the member limit gets breached it won’t have any affect on my pledged shares right?
Finally are there any hidden charges, also once I pledge can I just pledge and forget?
How many days/years can I pledge for?
I read somewhere you have to pledge everyday that cannot be right.
Not entirely sure about this. Though I don’t think haircuts were increased so much in 2020. Will try to find out and get back to you.
But yes, this depends on the Clearing Corporation.
No, this will not have effect on already pledged units.
There are no hidden charges. You will be charged Rs. 30 + GST when you pledge the ETF, other than that no charges.
However do note, for overnight F&O positions, you need to maintain minimum 50% margins in cash or equilevents and remaining 50% can come from non-cash collateral. If you are utilizing more than 50% non-cash collateral, then there will be interest of 0.035% per day charged on whatever extra margin you are using.
You don’t have to pledge everyday. Once you pledge securities, you can keep them pledged as long as you want.
Thanks for the reply,
Whenever you do can you please mention the difference in haircuts for ETF (Nifty 50), Blue chip stocks, And mf like arbitrage fund or nifty 50 mf. In times like covid or any other crisis. I am assuming stocks will have the haircut % go up drastically.
Also if I have pledged some holdings can I sell them without unpledging in case if an emergency would there be any charge for that?
@ShubhS9 you people introduced something like zerodha technical or zerodha market
even i cannot find a link in website - please let have a link in kite - then only newbies and kite user can see - everything you are hiding means what can i see in kite
------------------- delete me --------------------