• HDFC securities
• 22 Apr 2024
• Knowledge Centre

 

 

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.

 

 

Process of Pledging: -

Step1: Go to www.hdfcsec.com web trading platform and login with user credentials. Go to Demat balance section and click on Equity.

 

 

 

Step 2:- Click on Hold for the SGB,GSEC to Pledge

 

 

 

Step 3:- Insert the Qty to Pledge

 

 

Step 4:- Then you will be redirected to NSDL/CDSL page. Accept all T&C