Introducing SGB, Tbill and G-Sec as Collateral for F&O Trading

Here’s a rundown of the key highlights of this exciting new feature:

Expanded Collateral Options:

Clients can now diversify their collateral options beyond Stocks and ETFs by pledging SGBs, T-Bill and G-Secs to obtain margin for trading F&O contracts.

Cash Equivalent Collateral:

Collateral from approved SGBs, T-Bill and G-Secs will be treated as cash equivalents, allowing clients to leverage them effectively for trading purposes.

Margin Maintenance:

To meet exchange mandates, 50% of the margin for F&O positions must be maintained in cash or cash equivalents. Pledged SGBs, G-Secs, T-bill and select Liquidbees fulfill this requirement, reducing the need for cash in the trading ledger while earning interest simultaneously, offering a double benefit to the client.

Interest Savings:

By pledging SGBs, G-Secs, T-bill or select Liquidbees for initial margin requirements, clients can avoid interest charges on cash deficits in their trading ledger, potentially resulting in significant cost savings.

Benefits Retained:

All pledged securities will remain in the client’s demat account, accruing benefits such as interest for SGBs, G-Secs, T-Bill and Liquidbees. This ensures no loss of ownership or benefits for the client.

We firmly believe that these new features will greatly enhance our clients’ trading experience, providing them with greater flexibility, cost savings, and efficiency.