Revised: Haircut for Cash & Cash Equivalent Securities for Margin Benefit

Hello Traders,

We continue to constantly take feedback from our users in our aim to improve our product & services and offer you an unmatched experience on Dhan.

At Dhan, we provide Margin Benefit on 1450+ stocks and also packed with best-in-class pledge experience. With Dhan you have the ability to instantly Pledge / Unpledge, sell in-line without requiring to unpledge first, get Margin Benefit for Options Buying, availability of margin benefit across all segments including Currency & Commodities, Real-Time Margin benefit calculation and lots more.

We received feedback from some of our community members to provide additional margin for select Cash & Cash Equivalents. While evaluating this request, we also looked at some power users on Dhan who are using Pledge Margin Benefits for trading.

To provide a better edge to our traders, we have now revised haircuts for margin on some popular securities, list mentioned below:

Security Name Security Symbol ISIN Previous Haircut New Haircut
ICICI Pru S&P BSE Liquid Rate ETF ICICILIQ INF109KC1KT9 10% 8%
Nippon India ETF Liquid BEES LIQUIDBEES INF732E01037 10% 8%
Nippon India ETF Long Term Gilt LTGILTBEES INF204KB1882 10% 8%
ICICI Prudential Nifty 5 Yr Benchmark G-SEC ETF ICICI5GSEC INF109KC14A8 10% 8%

While on this topic, If you are not fully aware of the incredible features and benefits on Margin Pledge on Dhan, we request you to spend couple of minutes on this post: Full post: Margin Benefits & Pledge Shares Experience for Trading on Dhan

We hope this will be helpful for our traders on Dhan.

Thank you


@iamshrimohan ,

How do you see GSec vs Gilt ETF?

Your answer may help community in general.

@iamshrimohan ,

Can you please also consider below Nippon Gilt ETFs? They seem to have more liquidity than the LIC ETF.


HI @amit that is a very good observation. From risk perspective, firstly not all the G-Secs we allow due to liquidity. Secondly, we do a standard haircut on G-Secs at 10%. So if compared with corresponding GILTs, you can get an additional 2% benefit if invested in LICNETFGSC, ICICI5GSEC, or LTGILTBEES. However, there are pros and cons of both.

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Ill get this checked from the risk team.

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@iamshrimohan ,

Any update?

@amit General formula for CASH component is MIN(Dhan VaR, NSE VaR, NCL Haircut). For Nippon 5Y GILT Bees ETF, the NSE VaR is 12.5% and NCL Haircut is 10%. So here, the minimum value comes out to be 10%. We cannot give a haircut below that.

@iamshrimohan ,

here, isn’t NIPPON a better choice than LIC?

Any particular reason why Nippon India ETF Longterm Gilt is not included in the above list?

It is included, check:

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I see… thanks @iamshrimohan !!