Can I pledge Sovereign Gold Bonds (SGB's) as collateral to get collateral margin at Zerodha?
Yes, you can pledge SGB’s to get collateral margin at Zerodha, provided they are on the approved list of securities that can be pledged. The collateral margins will be received after a % deduction called a haircut.
So if the haircut is 10%, for every Rs. 100/- worth of SGB’s pledged, you'll receive a collateral margin of Rs. 90/-.
You can find the list of securities that can be pledged here.
To know what pledging is and how it works at Zerodha, click here.
To know how safe it is to pledge with Zerodha, please click here.
Note: You will continue to receive the interest on your SGB’s even if they are pledged.