SGB/GSec/Bonds Pledging for cash component

Can i pledge following for cash components?

  1. SGB
  2. GSec
  3. RBI Bonds
  4. Treasury Bills

What happens to interest earned when they are pledged?

where can i find list of instruments(Funds/BEES etc) which i can pledge as cash component?

Hi Anup, you can pledge SGB and G-Secs, these are considered as cash equivalent. RBI Bonds and T-Bills cannot be pledged. You can check the approved list of securities here:

You’re still eligible to receive the interest and it’ll be credited to your primary bank account.

I want to know about the pricing of G Sec , as recently I have purchased 500 qty of G sec6.99% 2026 at price 100.16. In orders at coin the amount is shown as Rs 53105 ,however, the invoice I got from zerodha is for Rs 50780. I did not understand this, please would you explain?

The bonds will be allotted based on the price/yield discovered in the RBI auction. Since the price is unknown, the exchanges block an amount in your trading account.

After the auction, the difference between the auction price and the amount blocked will be refunded. You can learn more here: On what basis does Zerodha block money for the bids for G-secs?