Queries on Liquidbees. More in details


  1. Can the pledged Liquidbees be used in intraday equities?
  2. If I buy Liquidbees today, can I pledge it today? Or do I have to wait until it is in my demat account and the proceed to pledge?
  3. If I unpledge the Liquidbees today, Do I have to wait to sell it until it comes in my demat account? Or is there any window I can sell it earlier?
  4. How many days it typically takes to redeem the dividends, and what are the charges?
  5. What are the trading charges for buying/selling the bees. Usual lower of 0.1% or Rs. 20?
  6. Which is better Liquid fund that can give 3%+ a year that has less hassle buy/selling/reddeming fractional dividends? I know that cannot be certain, but is any fund stands out foe ease of trading/reddeming/riskfree etc?


  1. No, you can’t.

You will have to wait until you receive delivery in your demat to pledge. You can sell it, but there’s a risk of auction on BTST trades. More here: https://support.zerodha.com/category/trading-and-markets/trading-faqs/articles/btst-risk

Yes, you’ll have to wait until it hits your demat, for now. We are working on making allowing sell from pledge

Whole units can be sold on the secondary markets, credit comes on T+2 to withdraw


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@Phoenix1 JUST go through this

Actually it’s not worth as per my view.

Oh. Why? You had a bad experience? I was just thinking to get some return on idle cash and get return similar to SB account and use for margins

Thanks for the clarification. Adding further…

  1. What about redemption of fractional units. How long does it take to realise the money in my account? Does it come to trading account or to my Bank account?

  2. Any Liquid funds that are operationally easier to transact via Zerodha? Or is it indifferent? Especially for fractional units.


What are the pros and cons differences amongst the 3 : i.e. : liquidbees; liquidfunds; overnight funds

Liquid funds are generic term. Liquidbees is a prduct by DSP. These get categorised for margin against pledge. They may differ in investments by these AMC. These funds provide liquidity to banks/institutions in money market against securitisation. Saw a video by Zerodha where the head of DSP explaining Liquidbees product. This is my understanding.

  1. Dividends will come in the form of additional units, here’s how to redeem them: https://support.zerodha.com/category/mutual-funds/understanding-mutual-funds/articles/redeeming-fractional-units

Scroll to the end of this page for the list of liquid funds accepted as pledge.

After zerodha allowed pledging of liquid mf’s I moved all my funds to liquid mf from liquidbees. MUCH better returns… more than double. :slight_smile: