New series of SGB are not instantly activated for pledging.
First CCI needs to include it in list of acceptable security, only then brokers can include it.
Sometime this process takes couple of months.
Thanks Akash for the reply.
Another headache 
Probably better off buying previous issue bonds from secondary market - avoids the whole delay.
Thanks.
Nakul
In case you are interested, you can verify the list of SGBs currently approved by Clearing Corporation for pledging by searching for a circular named âRevised list of Approved Securities and Approved Banksâ (Annexure 4 within that circular) on the NSE website. Only after it is added to the Clearing Corporation list does it get added to Zerodhaâs list -
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Thanks Prayag 
Life is never simple 
, would leave this for Zerodha team to track approval and add to pledging system.
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I also bought May SGB. Waiting for it to get in approved security list.
Anyone has any approx idea, How many more months it will take ?
Thanks in advance.
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There isnât a fix date, but generally new circular is issued around 20th of month. So if you are lucky it can get included in 20th June circular or, if not, in 20th July. After circular it takes few weeks to implement.
So best case should be included by 10-15 July or if not in it, maybe a month later.
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I see on NSE site that MAY 29 SGB is accepted as approved collateral. Can someone from zerodha on this forum confirm when zerodha can now allow it as collateral?
The answer to your question is answered above. SGB May 29 is not yet listed on Zerodhas approved list of security. You can check the approved list of security here.
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Thatâs right, i just wanted to know when zerodha is going to update their approved securities list to allow this new SGB. Initially they were waiting for clearing house which is now approved, how many days we expect zerodha to allow it now.
Zerodha customer care is saying 2-3 months, which looks scary delay!!
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It depends on the brokers I guess. Since SGBâs are gold bonds some brokers allow pledging for it using certain terms and conditions, while some may not.
you did a much better job than zerodha customer care, all i wanted to know was when were the earlier tranches approved for pledging (an approx time frame). depending on the answer i had to make a call to either hold on to the May 2021 sgb, or sell it off and buy from an earlier tranche which is already on the approved list, thereby incuring a loss of around 10k
They just refused to put in the effort to pull up that answer. all they did was, threw their hands up in the air saying we donât know, its not up to usâŚblah blah. I clarified that i am no asking them to predict when this tranche will be eligible, but simply want to know when were earlier tranches were made eligible for pledging. then i understood i was dealing with very stubborn and lazy folks and just stopped askingâŚ
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May 29th SGB is good for pledging today. cheers mate! happy trading!
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tl;dr
fresh issue SGBs generally take 5-6 weeks for you to be able to pledge for margin, so plan accordinglyâŚ
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@ShubhS9 once the SGB is pledged with zerodha and used as margin for cash equivalent till maturity of SGB.What is the methodology to redeem it through RBI to avail tax free redemption. (As selling on exchange is not preferable due to capital gain tax)
Upon maturity, the SGBs you hold will be debited from your demat account automatically, this is called âExtinguishment of Securitiesâ, and the proceeds will be credited to your primary bank account. The redemption price will be based on simple average of closing price of gold of 999 purity of previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association.
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