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 CC updates the list of approved plans periodically.
Example scenario
Axis Growth - Regular is accepted by the CC, whereas Axis Growth - Direct is not.
- ISIN of Axis Growth Regular Scheme: INF846K01J79
- 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 percentage can be found by visiting zerodha.com/approved-securities.
Clients can only invest in Direct mutual funds through Zerodha using Coin.