As we enabled Pledging of Shares on Dhan, we have kept on adding more and more securities that we can accept as collateral and cash equivalent for traders to get the max benefit for their trading.
From today, we are expanding this list of acceptable securities for pledging even further. On Dhan, we will be accepting Government Securities as pledge and yes - this will be considered as a Cash Equivalent.
Dhan users will be able to get 90% of collateral value as margin which can be used as Cash Equivalent.
Collateral Var %
Collateral Benefit %
Component consider as a Margin
You can access the complete list of accepted securities as Collateral Cash Equivalents - here
Please Note: We will only be accepting Government Securities which is traded in the Secondary Market for pledging.
Can we bought g security on dhan ? When i cheked On Go bid that time i think dhan is not available as i cheked and go bid g security reflect on dhan web or it’s available only on cdsl
? How we can plage on dhan please explain in detail
Hi @kuldeep ,
I am wondering when mutual funds and other bonds will be available for pledges in Dhan. Is there any possibility before launching a mutual fund platform in Dhan if we transfer from other platforms?
We take market depth of both NSE and BSE for liquidity. However, due to a larger volume happening at NSE, that becomes our default exchange.
When we say liquidity, it intuitively means almost nil slippage. For example, consider this scrip. It has no sellers but only buyers. Now if you (or we) had to sell, the slippage will be very high. (In bond market terms it would give an effective yield of 7.18% to the buyer for a tenure of 38 years. In layman’s terms, fixing your return at 7.18% for 38 years which is at par with 10Y yield. Eventually the client (or we) would suffer the loss.)
@Beena NSE / BSE is the market place for retail investors. NDS-OM operated by RBI has a minimum ticket size of Rs. 5 cr.
As I mentioned, Risk is not just of the broker but also of the client. If the liquidity is low, the paper would be sold at far below price, which will create un-necessary loss to the client.
We allow Options Buying also over the pledged margin which makes us more prone to risk as compared to others.
However, having said this, we review the list of securities that could be accepted as pledge on periodic basis, please allow us some time to review the G-Secs and update the list. Will inform you over this portal / post once done.
@amit yes the LTGILTBEES are good alternative for G-Sec. If the motive is investing in fixed income securities and using the pledge proceeds as margin for F&O trading, I think LTGILTBEES are great. They come with a haircut of 8% as compared to 10% in the G-Secs