Hi @PravinJ ,
How to invest in government securities (T-Bill, SDL, Long dated bonds) at Dhan since liquidity is issue in these securities? (I guess Zerodha plays role of market maker and make it easy for clients) Any plans for this investment segment?
Dhan accepts GS for pledging, however, if I’ve GS with other broker (other demate account) OR with RDG account, is there any workaround for pledging at Dhan to generate margin collateral for FnO trading?
Zerodha
Hey @t7support @amit ,
For some reason we missed this.
Assuming that you are talking about primary investment, the answer to your question is yes, you can invest in government securities through Dhan. However the process is offline as of now. You can send us an email with the details of your investment and we will be happy to execute it for you. In the times to come you can expect this process to become online.
Dhan does accept government securities for pledging so long as they are in your Dhan demat account. We will not be able to pledge shares present in other broker or RDG accounts.
Hope this helps!
Thanks,
Pranita
Thanks. Searched today and it seems T-Bills, GSec, SGB etc are available in Dhan. If we buy these can these be pledged ?
I don’t find any TBILL being listed in the google sheet shared by Dhan.
Can you please confirm that TBILL can be pledged?
Hey @amit ,
TBill can be pledged. However, we will unpledge instruments such as Gsec, Tbill, a month before their redemption. This is as per risk policy since we will cease to have control on the security once redeemed in user’s account.
@Pranita can you please confirm that all GSEC bonds can be pledged?
I have GOI LOAN 6.69% 2024, and its not there in this list:
And it shows under “Unavailable for Pledge” in Dhan UI.
Hey @trader810 , GSec bonds cannot be pledged currently at Dhan. However, we are working on making this available for our users soon.
Thanks,
Pranita
Hi @trader810,
Glad to update that this feature is now available Live: Now you can Pledge Government Securities on Dhan
Same hear me bhi zirodha coin ki trh yha pr pta kiya na koy post mila na koy reply
GOI LOAN 7.50% 2034
GOI LOAN 4.56% 2023
These 2 Gsecs are unable to pledge - can you check why?
Hi @viswaram Low liquidity on these two Gsecs. Makes it difficult to provide pledge benefit on them, if it improves will consider.
@PravinJ For pledging why should we look at liquidity ? If we were trading in it, liquidity would have mattered. But we are not. So please enable it for pledging.
Margin is given on basis of the underlying scrip, if the liquidity on that isn’t available, becomes difficult for Risk team to manage the position. We have some thoughts on this, working on an alternative to solve this in a better way.
@t7support
Let me explain this to you.
Lets say you Pledge GOI LOAN 7.50% 2034 worth 87000Rs.
Assume you get margin (loan) of say 70000Rs after haircut. And bought some other shares using that margin.
Now for some reason you dont pay back 70000Rs to Dhan. i.e. you default on payment.
So Dhan staff tries to sell GSec you pledged.
But since there is no liquidity i.e. there are no buyer. They cant sell the Gsecs.
So its a complete loss of 70000Rs.
So they dont take risk of giving margin (loan) on such bonds / shares which they may not be able to sell in case of default.
Hope it clarifies.
Most of the Gsecs are illiquid, that doesnt mean it should not be accepted as pledge. I transferred these from zerodha where it was already pledged.
If it were a new issue - i understand your point. Also respect the point that in a margin call or wipe out - you would need to sell the holdings to recover the dues. But GOI bonds are sovereign guaranteed and has intrinsic value.
Hope you reconsider the decision.
Also send the list of ISINs you are accepting as collateral.
