Can Sovereign Gold Bonds (SGB's) be pledged as collateral to get collateral margin at Zerodha?
SGBs can be pledged for collateral margin at Zerodha if they are on the list of approved securities for pledging. The list of approved instruments that can be pledged for margins and the applicable haircut % can be found in this list (DOC),
Assuming a 10% haircut, for every ₹100 worth of SGBs pledged, a collateral margin of ₹90 will be received. To learn more about pledging, see What is pledging and how does it work?
Did you know? The interest on the SGBs will continue to be received, even if they are pledged.