Understanding the pledging and the 50:50 rule

Zerodha
1

Let’s say I have NIFTYBEES valued at 2,00,000 and LIQUIDCASE also worth 2,00,000. I’ve pledged both to obtain a collateral margin of approximately 3,80,000.

Can I trade using the entire 3,80,000? Given the 50:50 rule, 50% must be in equity collateral, while the other 50% should be in cash or cash equivalents.

Is it possible to pledge cash equivalents to get additional collateral margin? Or it is not possible to pledge that remained 50% cash equivalents?

2

Hey, You could go ahead and pledge both the components and get the margin after the haircut but try to come some component around 10% in cash to avoid liquidation of assets.

You can trade with the entire margin after the haircut.

Yes it is possible to pledge additional cash equivalents.