SGB vs Goldbees - Cash component query

Zerodha
1

SGBs are considered as cash component collaterals whereas Goldbees are non cash. The liquidity of SGB is also very less compared to Goldbees.

Given that they both track the same underlying why isn’t goldbees / gold etfs accepted as cash component collateral?

2 Likes
2

Interesting question.

3

Would be good if someone can answer this.