Purchasing & Pledging of GSecs?

[MandeepMakhija]

I haven’t yet purchased GSecs, but I have heard quite a number of people talking all rainbows about them. I am thinking of investing in GSecs soon.

[abcd5662]

Hello, any clue on how long before a new gsec issue is available for pledging? Asking specifically for 726GS2033-GS
@ShubhS9

[ShubhS9]

@abcd5662

Hello, any clue on how long before a new gsec issue is available for pledging? Asking specifically for 726GS2033-GS
@ShubhS9

This bond was issued on 6th February. You will be able to pledge once approved by the Clearing Corporation. They update the list once per month.

[ManoranjanS]

@ShubhS9 @Bhuvan

Why can’t we sell pledged Gsec or SGB or any cash equivalent component directly ?

It is loss of opportunity for unpleding & selling it on next day. Can we incorporate instant selling of pledged?

@Jason_Castelino : i had seen you had this question somewhere i couldnt get that thread. Did yiu get response for that ?

[Jason_Castelino]

@ManoranjanS

Did yiu get response for that ?

Nah. I don’t have hopes also.

@ShubhS9

Tagging @MohammedFaisal here so he can explain.

Waiting waiting and waiting….

[ShubhS9]

@ManoranjanS

Why can’t we sell pledged Gsec or SGB or any cash equivalent component directly ?

It is loss of opportunity for unpleding & selling it on next day. Can we incorporate instant selling of pledged?

Allowing instant selling of pledged cash component securities is on our list of things to do.

[ManoranjanS]

Hello @ShubhS9

Just trying to understand , when we have instant selling of peldged stock , How different is selling of cash equivalent.

Onus should be on investor to make sure he still meets 50 percent cash equivalent. Otherwise penalize . 'm i missing something else.

Appox when can we expect this to be available?

[Dev_Anand]

Can we buy stocks for swing trades by pledging G-Sec ?

[KarthikAcharya]

Hey @Dev_Anand

The margin obtained can be utilized for intraday equity trading, long and short futures, and writing options (equity and currency F&O).

[Chetan_Nahata]

@KarthikAcharya Can the margin obtained by pledging Cash Equivalents securities be utilized towards commodities Long and short futures? If yes then how do I choose whether I require the margin towards commodity A/c or equity If no any plans to bring this?

[KarthikAcharya]

Hey @Chetan_Nahata

Commodity futures and options cannot be traded using collateral margins.

We are currently exploring the possibility of offering this option to clients.

@VenuMadhav

Much earlier, the Equity markets were regulated by SEBI and Commodity markets by Forwards Market Commission (FMC). By design, every broker had to obtain membership separately and operate it as 2 different business units.

FMC was then merged with SEBI and SEBI laid down guidelines for unification of the Equity and Commodity businesses. This change is a big because we’ve to merge two different companies, processes have to undergo changes, system related changes and since there’s dependency on RMS vendor, it’s taking an extended period of time.

[LOHIT_SUBODH]

If I pledged my GSec after purchasing from secondary market , will i receive the semi annual interest payment on record date?

[ShubhS9]

@LOHIT_SUBODH

If I pledged my GSec after purchasing from secondary market , will i receive the semi annual interest payment on record date?

Yes, you are eligible for receiving the interest payment. This will be credited directly to your primary bank account.

[Mr_M]

we can not sell, only non cash can be sold,

unpledge need for mf, cash components