If I pledge Gsecs or liquid MFS in zerodha is the requirement for 50% cash margin and 50% collateral margin still applicable?
Margin received from pledging G-Secs and Liquid mutual funds is considered as cash equivalent. In this case you don’t have to maintain margin in 50:50 ratio.
Though, would still advise you to keep cash in your account to cover charges and losses since the margin cannot be used towards settling this. And if your account goes in negative balance there will be interest charged at 0.05% per day.
You can learn more here:
@ShubhS9 If I’m not wrong, all of the components mentioned in the cash component part of this doc is equivak=lent to cash and do not require maintaining a 50:50 position, right?
Cost of pledging is 30+GST with no further interest charges.
Yes, all the securities that are in the cash component section are considered as cash equivalent.
There are no other charges apart from pledging charges.