Why can regular plans be pledged but not direct plans of the same mutual fund scheme?

An instrument must be approved by the Clearing Corporation (CC) to qualify for pledging. While the CC may approve regular plans for certain mutual fund schemes, it may not approve the corresponding direct plans in some instances. Additionally, regular and direct plans of the same scheme may have different International Security Identification Numbers (ISINs). The list of approved plans is updated periodically by the CC.

Example Scenario

Axis Growth - Regular is accepted by the CC, whereas Axis Growth - Direct is not.

1. ISIN of Axis Growth Regular Scheme: INF846K01J79
2. ISIN of Axis Growth Direct Scheme: INF846K01J46

The list of stocks and mutual funds that can be pledged with Zerodha for margins and the applicable haircut % can be found by visiting zerodha.com/approved-securities.

Did you know? Clients can only invest in Direct mutual funds through Zerodha using Coin.