Can I pledge Nifty Bees in Zerodha?
Yes, we provide margins on Liquid mutual funds, and you can pledge liquid funds to avail margin.
The cost of pledging is ₹30 + GST per instrument irrespective of the quantity pledged. Fractional units of Liquid BeES and mutual funds can't be pledged.
You can pledge the stocks and mutual funds listed in this sheet to get collateral margins¹. They are divided into cash components² and non-cash components³. The applicable haircut is also listed in the above sheet. The cost of pledging at Zerodha is Rs 30 + GST per pledge request, irrespective of the quantity pledged.
Liquid Bees is 100% safe as it invests only in Govt. Securities, it is debt, but NSE go for 10% haircut if given as collateral. 2. Nifty Bees is market related, risky security.
Total collateral is the sum of the collateral amount received from pledging equity holdings and liquid funds. Collateral from liquid funds is considered as 100% cash when used to take any positions. Learn how to pledge your equity holdings for collateral here, and liquid funds/bees here.
- Install and launch Zerodha Kite App.
- Open Demat Account on Zerodha in a few easy steps and KYC approval.
- Search for Nifty Bees, after a few seconds it will display the stock in the results.
- Click on it and you can easily process the payment.
- Search for NIFTYBEES on Dashboard. On top, you can see NIFTY50 is displaying but there is no buy or sell option as it's just an indie. ...
- Select NIFTYBEES NSE ETFs. Choose NIFTYBEES from the one reflected in the dropdown indicating NSE one. ...
- Enter your Buy Details. ...
- Go to Orders.
Stocks that are not present in the approved list can't be pledged. Stocks are not settled in your demat account. T1 holdings can't be pledged. You'll have to wait until they are settled (T+2 days) to pledge them.
The collateral margin will be available on T+1 day for the stocks that are pledged before 4 PM. When using collateral margin to trade F&O, the shareholder needs to have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha.
An investor can pledge his Mutual Fund units as a security to lenders such as banks and non-banking financial companies to borrow money against the existing units. To borrow the money, a lien has to be marked against the the units.
Can I pledge liquid BeES in Zerodha?
Yes, we provide margins on Liquid mutual funds, and you can pledge liquid funds to avail margin. The collateral margin is received after a haircut deduction which can be checked here .
Nifty BeEs is the short form of 'Benchmark Exchange Traded Scheme'. It is an exchange traded fund that aims to offer returns similar to the S&P CNX Nifty Index. They trade on the National Stock Exchange similar to any other share in rolling settlement.
Nifty Bees, an exchange traded fund (ETF) that mimics the broad-based Nifty 50 index, saw the highest volume of Rs 350 crore amid a 815 point correction in the Nifty 50 on geopolitical concerns on Thursday. Previously in December 2021, the highest volume clocked was Rs 205 crore.
It is a mandatory process introduced by SEBI. When you buy shares under MTF, you have to pledge those shares to continue holding the position. It needs to be done by 9:00 PM on the same day of purchasing stock. In case you fail to do so, your shares will be squared-off on T+7 days.
For all pledge requests placed before 4:00 PM, the collateral margin will be available to trade on T+1 day (next working day). All requests placed after 4:00 PM will be processed only on the next working day.
Generally, pledging of shares is considered as the last resort for the promoters to raise funds. Raising funds by issuing debt or equity is comparatively safer than pledging shares held by promoters. If they are planning to pledge shares, it means that all the other options to raise capital have been closed.
Nippon India ETF Nifty 50 BeES has not declared any dividend for the last several years.
Most investors prefer Nifty BeEs over mutual funds because of their cost-effectiveness. The expense ratio of Nifty BeEs is 0.80 per cent, which comes down to 0.65 per cent for ETFs with assets under management (AUM) exceeding ₹5 billion.
ETFs at Zerodha: Zerodha provides every customer a brilliant opportunity to buy/sell ETFs using our trading platform, reducing costs and increasing profitability. Currently we provide CNC benefit to all our clients on ETFs.
| Scheme Name | NAV(Rs./Unit) | 5Y |
|---|---|---|
| Nippon India ETF Nifty 50 BeES | 191.11 | 13.60 |
| UTI Nifty 50 Index Fund Regular Plan-IDCW | 59.25 | 13.31 |
| Axis Bluechip Fund-IDCW | 17.77 | 13.73 |
| IDFC Nifty 50 Index Fund Regular-IDCW | 33.77 | 13.28 |
Which is the best Nifty ETF?
| Schemes | Latest Price | Returns in % (as on Aug 11, 2022) |
|---|---|---|
| SBI - ETF Nifty 50 | 181.81 | 0.91 |
| ICICI Prudential Nifty ETF | 191.25 | 0.91 |
| Nippon ETF Nifty BeES | 192.34 | 0.91 |
| HDFC Nifty 50 ETF | 190.18 | 0.91 |
You cannot buy a fraction of stocks in India, which means that you must purchase a complete stock and not a part of it. This means you will have to deploy a considerable amount of money to buy all the 50 stocks in NIFTY 50.
1) You will be able to unpledge your pledged holdings only to the extent of the unused collateral. The unpledge request will be rejected if the collateral is used for the positions taken. In such cases, you will either have to bring in cash or square off your position to be able to unpledge your pledged holdings.
Can I sell Pledged holdings without unpledging the same first? Ans. Yes, you can sell the pledged shares as usual through desktop and mobile apps or through your branch without bothering about unpledging the same.
Margin is the amount and / or security an investor must pay to his / her stock broker before executing a trade. Margin requirements are prescribed by SEBI and enforced by the stock exchanges.
Zerodha Capital, the NBFC arm of Zerodha offers loans against securities. To avail this facility, please visit Zerodha Capital's website and register yourself. Please note, you can straight away login using your Kite credentials.
Margin pledge/unpledged involves charges to be paid by the investors. Before selling out the pledged stocks, it is mandatory to unpledged them through the prescribed process; otherwise, the trader will be penalized.
The cost of pledging at Zerodha is Rs 30 + GST per pledge request. There is no cost for un-pledging.
Zerodha allows you to use mutual funds as collateral. Some mutual funds are treated as cash equivalent (e.g. few liquid, money market and gilt funds) and others are treated as equity (e.g. various other debt funds and equity funds).
Which broker provide better collateral? Every broker provides collateral after deducting % haircut as mentioned by exchanges. I think Zerodha allows cash equivalent for collateral. Zerodha does consider Liquid ETF's and Liquid MF's as cash equivalent and you can use it to trade in F&O.
Can I pledge liquid bees?
Answer: Yes. Even Futures need margin, and you can pledge LiquidBees for that margin.
Of course yes, Since the stocks are credited to your Demat account directly, you can pledge them. But once when pledging is done, this will not get reflected in smallcase due to privacy reasons.
Hey, yes, LiquidBees is considered as cash equivalent. You can refer to this list to check the securities which are considered as cash and non-cash component.
The fund's objective is to enhance returns and reduce price risk, which is done by investing into a basket of call money, short-term securities and money market instruments of short maturities while maintaining safety and liquidity.
Nifty BeES is the very first exchange traded fund (ETF) launched in India and it tracks the Nifty 50 Index. It was introduced in India by Benchmark Asset Management in December 2001. After some change of hands, it now belongs to Nippon India Mutual Fund.
Nifty BeES, a combination of a share and a mutual fund unit, trades on the capital market segment of NSE (National Stock Exchange). Each Nifty BeES unit is 1/10th of the S&P CNX Nifty Index value. Nifty BeES units are traded and settled in dematerialised form like any other share in the rolling settlement.
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Nifty BeES.
| ISIN Code | INF732E01011 |
|---|---|
| Face Value | 10 |
Is Nifty BeEs Safe? Nifty BeEs is a carbon copy of Nifty. Since it is linked to the stock market, Nifty BeEs are not as safe as a bank FD or even a debt fund. But it is safer than midcap or small cap stocks as it invests in top 50 large-cap companies in India.
When you pledge shares, you get margins, not cash. Hence you can't withdraw.
Instead of cash, a broker's clients can pledge shares worth an equivalent amount. Say a client wanted to do a trade worth Rs 1 crore. The Rs 20 lakh margin he has to put up with the broker can be in the form of shares as well.
How do I check if a stock is pledged?
You will be able to track your pledged holdings in the 'Statement of transaction' provided by CDSL. In the statement of transaction, you will find the pledged shares as a 'Debit'.
Zerodha does not charge for Equity delivery (CNC) trades. The brokerage is zero. However, if you have selected the CNC product type and bought and sold the shares on the same day during the market hours , it will be considered an intraday trade(MIS), and intraday brokerage will be charged on your trades.
so If something Happens To Zerodha You can Claim from their. Basically, the governing body SEBI ensures that the client who has invested/deposited money with the broker does not stand to lose if the broker screws up. This holds good only in cases of fraud, counter party insolvency etc.
As a thumb rule, pledging of shares above 50% can risky for the promoters. Always ignore companies with high pledging of shares to avoid unnecessary troubles. This is because pledging of shares is a sign of poor cash flow, low-creditability high-debt company, and inability to meet the short-term requirements.
Promoters can pledge their shares to avoid losing trade opportunities due to low cash margins. They can get a loan after haircut deduction. The collateral margin received from these pledged shares can be used for equity trading, futures, and options writing.
Haircut in the stock market is meant to protect the interest of the lender in the event of a price fall. For example, if you pledge shares worth Rs. 10 lakhs, and if the lender gives you Rs. 9.50 lakhs and tomorrow if the stock falls by 20%, the lender is at a huge loss.
Yes, we provide margins on Liquid mutual funds, and you can pledge liquid funds to avail margin. The collateral margin is received after a haircut deduction which can be checked here .
Of course yes, Since the stocks are credited to your Demat account directly, you can pledge them. But once when pledging is done, this will not get reflected in smallcase due to privacy reasons.
Zerodha allows you to use mutual funds as collateral. Some mutual funds are treated as cash equivalent (e.g. few liquid, money market and gilt funds) and others are treated as equity (e.g. various other debt funds and equity funds).
The collateral margin will be available on T+1 day for the stocks that are pledged before 4 PM. When using collateral margin to trade F&O, the shareholder needs to have 50% of the margin requirement in cash or cash equivalents. If not, interest at 0.035% per day will be charged on the cash component funded by Zerodha.
What happens if I don't pledge my shares?
It is a mandatory process introduced by SEBI. When you buy shares under MTF, you have to pledge those shares to continue holding the position. It needs to be done by 9:00 PM on the same day of purchasing stock. In case you fail to do so, your shares will be squared-off on T+7 days.
Hey, yes, LiquidBees is considered as cash equivalent. You can refer to this list to check the securities which are considered as cash and non-cash component.
(i) A fee at the rate of ₹ 5.00 for each margin pledge initiation and each margin pledge release between the account of the client and the account of the Trading Member or Clearing Member shall be charged to the Participant of the Client and Participant of Trading Member or Clearing Member respectively.
