Pledging of liquid fund and liquidbees

F&O
1

@ShubhS9 please guide me. Suppose I pledged my liquid fund for put selling and on the expiry day my put goes in the money and I want to take delivery and I don’t have more cash but have only liquid fund. Then what is option available for me.

I have to unpledge the liquid fund then I have to redeem the fund and I get instant cash or it will take time?

I can directly redeem fund without unpledging?

I have to square off the put in loss then unpledge the fund then after one day I will get cash then I will buy from the market?

Instead of liquid fund I should go with liquidbees. Because in liquidbees I can get instant cash by selling. One more question in this…I have to unpledge the liquidbees first then sell or I can directly sell??
Please help me

2

You will not be able to redeem the fund without unpledging, after redemption, the payout depends on the funds settlement period which you can see on the redemption order window.

You can do this as well.

The decision is up to you. You should do what suits you the best.

Yes, you’ll have to unpledge LiquidBees before selling.

3

One more question @ShubhS9…Is pledging/unpledge takes time or processed on same day?

4

If you place a pledge/unpledge request before the cut-off time (4 PM for pledging and 2 PM for unpledging), margins/shares will be available in your account the next day. You can know the process for pledging here and unpledging here.

5

Liquid funds (except liquidbees) have volume liquidity issue while selling in the secondary market .
So , how will u manage it ?

6

@ShubhS9 can u please provide latest list of pledgeable securities/funds on zerodha

7

You can check this.

8

Thanks @ShubhS9, just a query - are Hybrid and Arbitrage funds also considered as 100% cash equivalent like the liquid funds ?

9

No, Arbitrage and Hybrid funds aren’t considered as cash equivalent, you can check the list, cash and non-cash equivalent securitues are listed seperately.

10

Thanks @ShubhS9, I’ve purchased Edelweiss Liquid Fund Direct from Coin, but its not showing any options for pledging in Console

11

Currently only Regular Plan is available for pledging for this fund. You’ll be able to pledge Direct Plan when it is approved by Clearing Corporation. You can refer to the list shared above to check all the approved securities.