Pledging LiquidBEES for Margin

  1. I have the following queries on LiquidBEES:-

    (a) SEBI Mandate states that 50% of margins for overnight F&O positions
    are to be maintained in cash. If i have pledged my LiquidBEES ETF for
    margin, can it be offset against the cash component required for holding
    overnight F&O positions?

    (b) Can LiquidBEES units be used for buying Equity Shares BEFORE
    pledging for margin?

    (c) Can LiquidBEES units be used for buying Equity Shares AFTER
    pledging for margin?

    (d) Can LiquidBEES units be used for buying Commodity Futures
    BEFORE/AFTER pledging for margin?

liquid bees are considered as cash equivalent

you can’t use it for equity delivery

The exchanges consider Liqudbees to be cash equivalents. Margin received from pledging liquid bees will be as good as having cash in your trading account.

A 10% haircut is applicable for Liquidbees. You can refer to this list to check the securities which are considered as cash and non-cash component.

You need to first pledge, and then after the haircut, you will receive the margin.

The margin received from pledging i.e. collateral margin can be used for trading Equity Intraday, futures & options writing.

No, MCX presently does not allow the use of collateral margin for trading.

You can refer to this support article for more information.

I hope this helps.

hey @nithin_kumrr , if liquid bees are cash equivalent then can we pledge it and trade in MCX (as its cash equivalent) ?

No, you cannot use margin received from pledging in MCX segment.

Ohh… that’s not cool! Anyway thanks.

Is there any specific reason for that @ShubhS9 ?

In the Kite dashboard, can we see separately how much money we have available from cash and cash via pledged margin? (Considering I want to intraday trade from pledged margin only and regular long term trade from actual cash margin)

On Kite funds page to see the cash balance you have refer to “Available cash” field. The breakdown for collateral margin is available in “Collateral (liquid funds)” and “Collateral (equity)” field. More details here.