Need Information - Cash Equivalent Components considered for Pledging at Dhan

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Finally, I had to reach out to support to get the details. Kudos for @Divyesh (Customer Support), who did not only listen and tried to understand the subject matter, but also tried his best by conveying my feedback to RMS team for the gap between industry standards and Dhan. :clap:

Hi @jayK,

Can I take following as conclusion on the topic:

  1. 10% Haircut for Liquidbees ETF
  2. Liquidbees ETF being cash equivalent, 50: 50 (cash: collateral) margin rule is NOT applicable on it

For example,

If I pledge 5L worth of Liquidbees, it should generate 4.5L as collateral. Whole of 4.5L can be used for margin requirement in FnO without the need of maintaining 2.25L as separate cash. However, I shall keep adequate cash for losses, so it doesn’t trigger the un-pledging.

Are we on sync?

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