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.