I am planning to invest in New up coming Bharat Bond ETF post launch. Will I be able to pledge it for for margin?
Not immediately. But assuming that it becomes a part of the exchange approved list of collateral, we will look at allowing pledging eventually.
Could you please point me to exchange approved list for collateral.
Is Bharat Bond ETF part of it ?
Check this post
What is reason for not including Bharat Bond ETF in the list of securities which are allowed to be pledged.
It isn’t yet part of the exchange approved list of collateral securities. Once it is part of we’ll consider it.
Thank you Bhuvanesh for providing the link to NSE circulars
The new circular from NSE (CMPT43276)contains Bharat Bond ETF.
Kindly include in list of securities allowed to be pledged in Zerodha.
I see Bharat Bond ETF in the list of approved collateral securities. So, does Zerodha allow pledging of Bharat Bond ETF now ?
Also, will it be considered at par with Liquid Funds (equivalent to cash) for pledging purposes ?
Yes. 10% haircut will be applicable.
No. Just Liquid funds and Liquid ETFs are considered as a cash equivalent. For other pledged securities, 50% of the margin needs to compulsorily come in cash and the remaining 50% can be in terms of collateral margin. More here
Sir when zerodha will provide margin for new Bharat bond I.e EBBETF0425 and EBBETF0431?
As zerodha is providing margin for older Bharat bond
Sir, Does Angel Broking bharat bond as collateral?.. if so what is the hair cut?
You will have to check the availability by getting in touch with Angel Broking.
The haircut for Bharat Bond is 8%.
now zerodha support EBBETF0430-F For Margin Or Not
You can pledge all the 4 Bharat Bond ETF’s, you can check out this list for more.
May I know why bharat bonds are part of non cash component?
It should be from clearing corp… but it should be otherwise if we think logically right?