Need Information - Cash Equivalent Components considered for Pledging at Dhan

Hi @Dhan,

Can you please share information (like Script Name, Haircut, Charges, Transaction time… etc.) about Cash Equivalent Components considered for Pledging at Dhan?

Above information with example would be more helpful.


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Hi @amit

Haircuts on the margin provided change multiple times, hence this is shown upfront to you on App & Web when you start your pledging process, it is always shown upfront - so you know it and also know margin you will get post pledge.

Charges: We have a single charge for pledge / unpledge, it is ₹ 12.5 / transaction / ISIN + GST. Involves all requests including creation, closure and invocation. (full pricing on Pricing & Detailed Brokerage Charges | Dhan)

Transactions Time: On Dhan it is all instant, if I am not wrong - we may be among the only few who provide this services. Pledge is instant, unpledge is over the weekend, but of you sell a pledged stock - them unpledge is instant and is inline when you sell, you don’t have to unpledge and then sell.

Hope this helps. If any suggestions to improve, do let us know.

Thanks @PravinJ for the prompt reply, please find my comments inline.

Haircuts on the margin provided change multiple times, hence this is shown upfront to you on App & Web when you start your pledging process, it is always shown upfront - so you know it and also know margin you will get post pledge.

So, I need to buy the item to be pledged and then wait for T+2 days to see the pledging UI, workflow and the more details. Am I right? If yes, maintaining a spreadsheet can be useful for the first time user.

Cash Equivalent Component

Can you please also share the list of 100% Cash Equivalent Component which eliminates the need of 50% margin as the cash requirement?

I’m expecting following ETFs considered as Cash Equivalent Component at Dhan,

can you please confirm?


Selling a pledged stock instantly will be a game changer for Dhan. I was not aware of this. I don’t know if others are well informed about this.

My pledged stocks are not even visible at Zerodha for me to trigger selling. And here Dhan is allowing me to sell pledged stocks instantly, that solves liquidity issue (that comes with pledging) by using Dhan platform

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Also waiting for Mutual Fund eagerly @PravinJ atleast bring in ELSS first . :pray:

Noted @nity, didnt knew experience elsewhere is so broken. For your reference listing down features of Pledge on Dhan

  • Pledge Shares anytime (its Instant)
  • Unpledge Shares - when not selling, we take request anytime and process over weekend
  • Unpledge Shares - while selling, we instantly unpledge post you place sell order. There is no additional need to unpledge and then sell.
  • Unpledge Shares - when sold and margin benefit is taken, we unpledge, square off margin position and sell the stock - all three at same time, and all three when sold. Again, there is no additional need to unpledged, square-off margin position and then sell.

Margin provided on all stocks is in real-time, updated multiple times in a day.
Other basic features like - clear view of what can be pledged, not pledged and to be unpledged.

Many updates, but still looking for an answer to the question asked in the title of the topic…

Here is the list of Cash Equivalent Components accepted for pledging at Zerodha and their foot notes on its margin fulfillment use case.

I’m looking for some fresh long term investments in Cash Equivalents, pledge them and use the collateral as margin for FnO trading.

Looking for clarity with example on this from @dhan to go ahead…

@RahulDeshpande @PravinJ

@pavs, some more challenges as following provision coming into effect from 1st Apr 2022

SEBI | Discontinuation of usage of pool accounts for transactions in units of Mutual Funds on the Stock Exchange Platforms

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@amit As discussed with our team on chat, Liquidbees are considered Cash component from a margin perspective. We have also shared the file that details collateral benefit and cash/non-cash margin component for each scrip. We will soon have this list available on our platform.

Head - Customer Support

Finally, I had to reach out to support to get the details. Kudos for @Divyesh (Customer Support), who did not only listen and tried to understand the subject matter, but also tried his best by conveying my feedback to RMS team for the gap between industry standards and Dhan. :clap:

Hi @jayK,

Can I take following as conclusion on the topic:

  1. 10% Haircut for Liquidbees ETF
  2. Liquidbees ETF being cash equivalent, 50: 50 (cash: collateral) margin rule is NOT applicable on it

For example,

If I pledge 5L worth of Liquidbees, it should generate 4.5L as collateral. Whole of 4.5L can be used for margin requirement in FnO without the need of maintaining 2.25L as separate cash. However, I shall keep adequate cash for losses, so it doesn’t trigger the un-pledging.

Are we on sync?

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@amit Yes, that’s correct :+1:

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@amit How about NIFTY BEES , BANKBEES, HANGSHEN BEES , are all BEES considered the same as cash equivalent it is it only LIQUID BEES?

Nope, they’re Equity linked Index ETF and comes under non-cash components.

Liquidbees is Debt ETF. Other options in cash equivalents are SGB, G-sec and debt MFs.

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Pledge workflow was smooth and worked fine! :clap:

Feedback on UI: as explained in the previous post, I think it would be wrong to use the following highlighted term