Soon the way how pledging works is going to change, see this circular, after that there is no need to move holdings out of one’s demat so user directly receives coupons to his bank account, we will allow then.
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Thank you. This relieved me. This will definitely bring cheer to many people .
Can we expect this starting September when the new pledging system is implemented i.e. they don’t leave demat but marked in favor of the broker ? Thanks !
Hopefully, yes.
This was done starting September. I was able to pledge G-secs for margin. Thanks for doing this. However, I wasn’t able to pledge the PSU tax free ones from NHAI and IFRC (bought through coin) that I own. I think those should also be allowed as pledge. In terms of liquidity they are just as same as other G-Secs (if not better) that can be pledged. From what I’ve observed, despite bid-ask being far apart for both (PSU tax-free as well as G-secs), the former has more buyers and sellers (albeit far apart) in general. Plus, given that zerodha acts as a market maker for these till liquidity picks up, wouldn’t that make liquidity concern a lot less of an issue for PSU tax-frees; even more so than for G-Secs ? Unless of course there’s a completely different reason why they can’t be pledged. Clarification on this front would be appreciated !
If they are allowed by clearing corporation then we may also allow,otherwise it is not possible.
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Thanks.
I dont see those PSU bonds in this list: https://docs.google.com/spreadsheets/d/1vRI4NKpJ-3mnOWxUhSRMSQD5txy8QNumzSQrdfGKyL0/edit#gid=15947263
Also some of the G-Secs that are in Approved list dont have “pledge for margin” option on console.
For e.g. Security Name: 577GS2030; ISIN: IN0020200153
But I suspect it might have something to do with not being traded since listing or is it worth a ticket to support ?
If it is there in list then it should get option to pledge.
Could you please confirm if it was treated as collateral or cash equivalent, with cash equivalent entire margin amount can be used for F&O.
It shows up under “Collateral (Liquid funds)” at the bottom of Funds Tab on Kite. Even if your G-Sec shows up in the updated list for Approved Securities yet you cant pledge it through console, email zerodha support and they’ll get it rectified in a few days. I’d however refrain from using entire margin obtained this way for derivatives positions becuase in absence of actual cash, Zerodha like any broker would be within rights liquidate position and your pledged securites for Mark-to-Market adjutments.
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T-Bills cannot be pledged. You can check list of all the approved securities here: Approved list of Securities at Zerodha. - Google Sheets