Does Zerodha provide collateral margins for trading by pledging bank Fixed Deposits (FD)?

Zerodha does not accept fixed deposits or bank guarantees as collateral for margins due to our operational and reconciliation constraints. These instruments are also subject to maturity and need to be renewed regularly to continue getting margin benefits. However, an alternative to providing Fixed deposits as margins is investing the capital in a liquid fund, which Zerodha accepts as collateral with a haircut of only 10%.

Moreover, clients can invest in Government Securities (G-secs) and pledge them as collateral to get margins. The list of approved instruments that can be pledged for margins and the applicable haircut percentage can be found by visiting zerodha.com/approved-securities. The process of pledging for collateral margins is online. To learn more, see What is pledging and how does it work?