Unable to pledge Mutual Funds for Margin

Zerodha
1

I have 2 equity based Mutual Funds (Arbitrage & Sector) in COIN.

I was hoping to pledge the same for margin requirements but unable to do so. I was under the impression that starting Aug, we would be able to pledge Equity Mutual funds too (not just liquid /overnight) to meet margin requirements.

Obviously when we are able to pledge stocks, it makes no sense to not-be able to pledge equity based Mutual Funds.

Please clarify. @siva

Cheers

2

We have not taken new pledge system live yet, after that if it is allowed then should be able to. We are trying to take it live this week.

3

Thanks Siva. My understanding is that the New pledge system is more focussed towards non-movement of scrips/funds into pool-accounts (for better client protection)

My question was whether you guys are planning to include equity based mutual funds for pledging. Makes sense when individual stocks could be pledged.

Cheers

4

The list is decided by clearing corporation, what ever is allowed we will, we don’t restrict anything at our end.

5

I want to pledge equity based mutual funds, will it be available from 1 sept 2020 or i need to wait more.
Clearing corporation allow many equity fund for pledge, but Zerodha list show only liquity funds,

6

Where did you get the list of equity funds allowed for pledging by clearing corp? Please share the link. It makes less sense that clearing corp would allow single stocks for pledging (risky) but disallow equity mutual funds (less risky)

7

You can find list of eligible securities for pledge by clearing corp, bit zerodha alow only few

https://www.icclindia.com/Static/Risk_Management/liquid_assets_commodity.aspx

8

I don’t see any list of securities. Are you sure it is the right link bro?

9

Click on the link, at page, bottom of table , you see this
“List of eligible securities and mutual fund units”
Click there and u get zip file of all securities

10

https://www.bseindia.com/downloads1/List_collateral.zip

11

Thanks M for the list.

Please take a note siva @siva

The list of available pledgeable securities in Zerodha needs to be expanded to allow equity based Mutual Funds too as per the regulations. I don’t know how Zerodha missed it out so far

Cheers