Pledging of new G sec

Bonds
1

Hi team,

can anyone guide me if i will be able to pledge these(last 3 in attachment) new G secs for F&O:-

  1. 7.18% GS 2033
  2. 7.3% GS 2053
  3. new GS 2028

Screenshot 2023-10-17 at 11.03.35 PM
Screenshot 2023-10-17 at 11.03.35 PM2006×1032 154 KB

2

Hey @Shilpa_Grover

You can refer to this sheet to find the list of authorized instruments for use as collateral.

3

Hi, Shilpa!

So there is the link in which you can check the approved securities for pledging. You have to check in the cash component.

The New GS will not be available for pledging instantly. It’ll take more than a month for the trading member and CC to arrive at a point as to whether the New GS fits the bill to be used as pledged security or not.

The other GS in which you can see the coupon rate already have been through the decision of being a pledged security or not. These are secondary issue. You can find them trading on Kite at a certain price.

The new GS is a primary issue or a fresh issue ie, they are being brought for the retails for the first time.

Hope this solves!

4

Also,

  • TBills are not supported to be pledged for margin.

  • The sheet mentioned above, will not contain newly issued / yet to be issued GSECs yet.
    (eg. New GS 2028 in the above screenshot)

5

@KarthikAcharya
Currently, Treasury Bills (T-Bills) with a maturity of 364 days can now be pledged for collateral margin. My question is about the new T-bill which is shown in the Bid section the settlement is 29-2-2024. This new T-bill will be available on the Approved list and it will be eligible for the Pledge or not?

I mean all new T-bills with a maturity of 364 days will be available by default on the approved list for the pledging or Again it depend upon the CC?

6

Hey @MSDGOES

It depends on CC. Once they approve, we can proceed.