What is the base value to calculate margin amount availabilit y for pledged SGB by zerodha?
(I do not mean the haircut).
SGB does not have good liquidity making accurate price discovery difficult.
Is it last traded price or price by EOD that serves as the basis ?
If there’s any approved security that hasn’t traded on the exchange on any particular day, the base value is taken from the rate master provided by the exchange clearing corporation (CC) to which the securities are being pledged.
In cases where the rate isn’t available with the CC for illiquid government securities, the base price is taken from the reference rates published by the Clearing Corporation of India (CCIL).