Hi, can i pledge G sec bonds for tading in equities in Dhan. where can i buy G sec bonds in Dhan? how much will be deduted as margin if i pledge the G sec bonds.

Regards

Rajanikanth

@kanth5574 Yes you can pledge G-Secs for trading in equities and derivatives in Dhan.

Please find the list of G-Secs here which are available for pledging. The list gets updated based on our Risk Policy.

### How to Find G-Secs on Dhan?

For example, you need to find 610GS2031. The security name would be â€śGOI LOAN 6.10% 2031â€ť. We have used custom symbol name for underlying securities so that nomenclature discrepancy does not affect the users. Nomenclature logics change at exchange level which brings in confusion. Just type â€śGOI LOANâ€ť on the search bar and you will get all the Government Securities listed.

**Note:** All G-Secs have a standard haircut of 10%. So for every 100 invested in G-Sec, you will get a value of Rs. 90 as CASH equivalent collateral which can be used as margin.

Hi,

Thanks for the response. Can i use it for trading in equities as i donâ€™t do options, future and intraday. what would be the charges for pledging?

Regards

Rajanikanth

Is there any interest charges apart from this ?

Nope. Citing an example to help you understand:

Assume you bought G-Secs worth Rs. 10L, post haircut you get margin of Rs. 9L.

For Intraday in Equity - Margin needed is 20%

Hence, total trade value can be of Rs. 45L. Here since the trades will be closed intraday, there will be no interest payment.

For BTST in Equity - Margin needed is 100%

Hence, total trade value can be of only 9L. Since you have bought the securities of 9L on T-day, you need to make a payment of 9L for the said securities on T+1 day. The margin was only used to allow for trade. Now in this case, DPC (delayed payment charges) will be applicable for the T+1 day.

For Positional in Equity - Margin needed is 100%

Hence, total trade value can be of only 9L. Since you have bought the securities of 9L on T-day, you need to make a payment of 9L for the said securities on T+1 day. The margin was only used to allow for trade. Now in this case, DPC (delayed payment charges) will be applicable from the T+1 day to the time securities are sold.

The DPC charges are 0.0438% per day.

Hello, I had a generic question on buying these GSec bonds via Dhan. Will these bonds payout fixed interest to my linked bank account at regular intervals ( I believe its every 6 months for long dated GSec bonds) ? Or they will just keep rising in price similar to Growth Mutual Funds

@Lumiaman88 yes, the interest is paid directly to your linked Primary Bank account on Dhan every 6 months. Since there are scheduled auction for sale for the Government Securities, intertest payment dates vary. They can be found on the RBI Website under Notifications section (Link).